Franchise FAQ

how much is to buy a mcdonald's franchise

by Keven Boehm Published 1 year ago Updated 1 year ago
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Key Takeaways

  • McDonald’s Corporation has 38,000 restaurants in 100 countries and 93% of them are franchise operations.
  • McDonald's franchisee applicants must have a minimum of $500,000 available in liquid assets and pay a $45,000 franchise fee.
  • Those looking to launch a new McDonald’s franchise can expect to shell out between $1,314,500 and $2,306,500.

McDonald's franchisee applicants must have a minimum of $500,000 available in liquid assets and pay a $45,000 franchise fee
franchise fee
A franchise fee is a fee or charge that one party, known as the franchisee, pays another party, known as the franchisor, for the right to enter in a franchise agreement.
https://en.wikipedia.org › wiki › Franchise_fee
. Those looking to launch a new McDonald's franchise can expect to shell out between $1,314,500 and $2,306,500. Existing franchise prices can cost upwards of $1 million or more.

Full Answer

What does a McDonald's franchise really cost?

McDonald's is one of the great American success stories. Most McDonald's owner/operators have entered the corporation by purchasing an existing restaurant. To open a McDonald's franchise, however, requires a total investment of $1-$2.2 million, with liquid capital available of $750,000. The franchise fee is $45,000.

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.

How to raise money for a franchise?

  • Begin at the beginning. Before you choose a franchise to partner with, before you even begin to shop for your ideal franchise, it’s a good idea to determine your current ...
  • Try talking to the franchisor before seeking funds elsewhere. ...
  • Getting funding is an exercise in risk management and tolerance. ...
  • Some food for thought. ...
  • You can do this. ...

How much money can you make in franchising?

How Much Money Can You Make Owning A Franchise? If you Google the national average income for a franchise owner in the United States, you’ll find answers ranging anywhere from $50,000 to $200,000+ per year. The real answer is that this number is largely irrelevant, as the average income varies greatly from franchise to franchise and business ...

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How much does McDonald's franchise cost?

Other costs include the $45,000 franchise fee, as well as construction and equipment related expenses. In total, McDonald's estimates that the average total startup investment ranges from $1,013,000 to $2,185,000, with franchisees netting an estimated annual profit of roughly $150,000.

How much does McDonald's require franchisees to pay?

McDonald's requires franchisees to pay, using non-borrowed personal resources, 40 percent of the total price for a new restaurant and 25 percent of the total price for existing restaurants. Given that the price varies by restaurant, initial down payments vary widely, which is why McDonald's requires franchisee applicants to have a minimum ...

What it takes

Most new franchisees enter the McDonald’s system through the purchase of an existing restaurant from either one of our franchisees or McDonald’s USA, LLC.

What you bring to the table

If you’re ready to bring your passion and commitment to our system, McDonald’s provides an amazing opportunity to realize substantial personal rewards.

Our selection process

After you successfully complete the training program, McDonald’s, in its sole and absolute discretion, will grant a qualified candidate a McDonald’s franchise opportunity. There may be a time delay between completion of training and the offer of a franchise, depending on availability of a suitable restaurant (s).

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