Individual Unit Costs
- Initial Investment: $1,314,500-$2,306,500
- Initial Franchise Fee: $45,000
- Royalty Fee: 4%
- Advertising Fee: 4%+
- Term of Agreement: 20 years
- Renewal Fee: $45K
How much does it cost to start a McDonald's?
How Much Does It Cost to Open a McDonald’s?
| Name of Fee | Low | High |
| Initial Franchise Fee | $0 | $45,000 |
| Real Estate and Building - 3 month's ren ... | Base Rent: $0 Percentage Rent: 0% | Base Rent: $229,000 Percentage Rent: 28% |
| Signs, Seating, Equipment, and Décor | $325,000 | $1,550,000 |
| Opening Inventory | $10,000 | $39,000 |
How much is it to buy a McDonald's franchise?
Purchasing a McDonald's franchise, either from an existing franchisee or by opening a new restaurant, requires a large investment. While the initial franchise fee is $60,000 plus GST, you will generally need at least $1 million in order to purchase a McDonald's franchise, and may need more if you plan on opening a new location.
Can you make money starting a franchise?
The franchisor doesn’t actually make much money if any at all from the upfront fee that a franchisee pays to purchase a franchise business. The investment cost of a franchise opportunity is simply there to cover the cost for the franchisor in terms of bringing a new franchisee on board. Making strong investments in new franchisees will ensure they get off to a great start. The following fees are usually covered:
Can I make money with a franchise?
When it comes to making money franchising, and if your franchise program is built right (hint, hint), you may have additional sources of revenue built into your franchise program.
See more
Background
McDonald's is the world's largest restaurant chain by revenue. The company serves tens of millions of customers daily across the world. They rechristened their business as a hamburger stand. Later they then turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona.
Support and Training Offered By McDonald's
On-The-Job Training: 500 hours (average) Classroom Training: 72 hours Additional Training: At local McDonald's restaurant
Franchises Similar to McDonald's
The International Franchise Professionals Group (IFPG) is an internationally recognized membership-based franchise organization. IFPG Franchise Consultants guide aspiring business owners through the process of identifying and investing in franchise businesses. The IFPG represents more than 550 franchises.
How much does McDonald's franchise cost?
McDonald's has the franchise fee of up to $45,000, with total initial investment range of $464,500 to $2,306,500. The data below, compiled from the McDonald's FDD (Franchise Disclosure Document) 2020, represent the estimated financial range for the initial setting up and first 3 months of operation for a new McDonald’s restaurant.
What does McDonald's sell?
Although McDonald's is known for its hamburgers, they also sell cheeseburgers, chicken products, french fries, breakfast items, soft drinks, milkshakes, wraps, and desserts.
Is McDonald's a franchise?
Although McDonald's is known for its hamburgers, they also sell cheeseburgers, chicken products, french fries, breakfast items, soft drinks, milkshakes, wraps, and desserts.
How much does McDonald's franchise cost?
McDonald's franchisee applicants must have a minimum of $500,000 available in liquid assets and pay a $45,000 franchise fee.
How much cash do you need to own a McDonald's franchise?
However, all applicants are required to have a minimum of $500,000 available in liquid assets, which is essentially cash to be used for investing in a McDonald’s restaurant.
How many McDonald's are there in the world?
McDonald’s Corporation has 38,000 restaurants located in over 100 countries and 93% of them are franchise operations. In other words, many entrepreneurs have chosen to make a living under the shadow of the ubiquitous golden arches. McDonald’s is a powerful brand, with many stores earning well over $2 million in sales annually. As a result, owning a franchise can be profitable for both the owner and McDonald’s when properly managed.
Does McDonald's offer financing?
McDonald's does not offer any financing or lending. Also, the new owner must pay down the debt over seven years. In rare cases, McDonald's adjusts prospective owner qualifying standards for franchises in urban and rural areas.
Do owners pay rent to McDonald's?
Owners also pay the monthly rent to McDonald’s based on a percentage of sales. Whether buying an existing McDonald’s franchise or building a new one, buyers can shop around to get the best interest rates on loans.
Does McDonald's approve new franchises?
New Franchise. In some cases, McDonald’s approves the opening of new franchises in regions where the company wishes to enter the market, which is also considered "buying" a franchise. Typically, candidates that are approved to open new locations are existing franchisees with experience owning and operating a McDonald’s restaurant.
Welcome
Jason Clark is the Senior Vice President and Chief Operations Officer at McDonald’s UK & Ireland. Here, Jason explains more about the McDonald’s Franchising model – and what’s in it for our Franchisees.
Gian Chahal
The support and training on offer helped me go from Police Inspector to Franchisee and now I serve the community in a different but no less rewarding way. With the help and support of a global brand, I can really make an impact locally. That’s the best thing about being a Franchisee.
Sarah Lloyd
I’d run my own Franchise before, but it was the support at McDonald’s that made all the difference to me. I’ve got access to a Franchise Consultant who I’m always bouncing ideas off. If I need any advice about my business, there’s always someone I can speak to, which means I can focus on making my business as successful as I can.
Ian Stephenson
Before becoming a Franchisee, I worked in a number of senior roles at McDonald’s. Thirty years’ experience with the brand gave me the confidence to set up my own company and I’ve never looked back.
Anne Wainwright
Prior to becoming a Franchisee I enjoyed a successful career as a Sales Director for Fujitsu. 10 years ago, I took charge of my first restaurant in Wakefield. Now, I operate six restaurants and employ over 600 people. I love being able to create opportunities for my people..
Paddy Cusack
Before becoming a Franchisee, I was a director in a real estate management firm, managing a team of 10 surveyors. I love working with people, so being a Franchisee is perfect for me.
Reema Mavani
Ever since I was young, I’ve wanted to build my own business. Having worked in the technology sector for over a decade, I knew what it took to manage large teams and be commercial – this experience set me up perfectly for becoming a franchisee.
How much does it cost to open a McDonald's franchise?
The estimated investment required to open a McDonald's Franchise is between $1,314,500-$2,306,500. There is an initial franchise fee of $45,000 which grants you the license to run a business under the McDonald's name.
Why is McDonald's franchising?
Franchising allows it to take a slice of sales while cut... McDonald's franchisees to receive more for restaurant upgrades. McDonald's Corp. really wants its franchisees to help change everything from the way customers order their food to the way employees provide service.
When did McDonald's open?
Kroc became their business partner and. opened the first McDonald's in Des Plaines, Illinois in 1955. McDonald's brand is in 122 countries around the world. Thirty thousand locations serve 51 million customers each day. More than 70 percent of McDonald's restaurants around the world are owned and operated by independent local business people.
Does McDrive have counter service?
The Drive-Thru, Auto-Mac, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the former two steps are frequently combined. In some countries "McDrive" locations near highways offer no counter service or seating.
Is McDonald's closing in India?
McDonald's India has announced it will close nearly 170 McDonald's outlets in northern and eastern India after the American fast food giant decided to terminate a franchise agreement with its Indian partner.McD... McDonald's Agrees to China Franchise Sale.
Can you own a franchise if you are absent?
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)
How long does it take to open a McDonald's?
Before you can open your restaurant, McDonald's requires you undergo a training process run through their corporation. You will need to undergo 9 to 18 months of training at a McDonald's restaurant near your home.
How to get McDonald's FDD?
A physical copy of the McDonald's FDD can be purchased online using PayPal or a credit card. However, you can find a free PDF online through a simple google search. If you're only planning to read certain sections, or if you're comfortable reading from a screen, it might be best to save your money and simply go online.
What is the dollar menu?
The dollar menu is a hot button item for franchise owners, as many find themselves losing money do to the heavily marked down prices. Unfortunately, you cannot get rid of or alter the dollar menu during your time as a franchise owner. ...
How much does it cost to open a restaurant?
To open a single restaurant, the company requires that potential franchisees have liquid assets of at least $750,000. Pre-opening costs for equipment and other supplies can cost $1-2 million.
How to sell food in a city?
In order to buy and sell food, you need to apply for the proper permits in your city. Such permits vary from district to district, so make sure you visit the Department of Health website in your town to find out the rules and regulations. This should also tell you what you need to know about trash disposal. You may need to provide your own private dumpster for restaurant-related trash or you may have access to a community dumpster for restaurants in the area. This depends on your location and the regulations of your city.
How to get started with a soft opening?
Try a soft opening. Oftentimes, doing a soft opening with special promotions and deals can help you get started. It will draw in customers and generate early interest and excitement before your official opening.
Does McDonald's mail food?
The McDonald's corporation will mail you the food supplies you need from your restaurant, and you will learn the process for placing orders as well as basic costs during your training.
