how much mcdonald franchise cost

How much does it cost to buy a McDonalds franchise?

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. Owning a McDonald’s franchise is an easy sell.

How much to buy a McDonald's franchise?

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.

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How much does it cost to open a McDonald's?

Those approved to launch new McDonald’s franchises can expect to shell out between $1,314,500 and $2,306,500 to get the restaurants up and running. Owners pay an initial franchise fee of $45,000. The costs can vary depending on the region of the country and store type as well as the restaurant's size.

How to start a McDonald's franchise?

Steps to starting a McDonald's franchise

1. The application process focuses on financial readiness and customer service. The process starts with an online application. ...
2. The training program teaches franchisees the business from bottom to top. ...
3. Buying a restaurant might involve a change of scenery.

How much does McDonald's franchise cost?

How much cash do you need to own a McDonald's franchise?

How many McDonald's are there in the world?

Does McDonald's offer financing?

Do owners pay rent to McDonald's?

Does McDonald's approve new franchises?

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How Much Does McDonald’s Franchise Cost?

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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.

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).

What type of franchise does McDonald's have?

McDonald’s offers four types of franchises: Traditional Restaurant: This type of franchise is located in freestanding buildings, store fronts, food courts, and other locations. The franchisee operates a full-menu restaurant, offering the public a high standard of quality and uniformity in food and service.

How much does McDonald's require to purchase a restaurant?

McDonald’s also offers two types of restaurant purchase: new or existing. The area where this makes the most difference is the required initial down payment. For new restaurants, the down payment is 40% of the total cost. For existing restaurants, the down payment is 25% of the total cost. The down payment cannot come from borrowed funds. Also, if financing is used for the rest of the initial investment costs in any way, the remaining balance of the restaurant purchase price must be paid off within the first seven years of operation.

How much cash does McDonald's require?

In addition, it takes more than just the initial investment to become a McDonald’s franchisee. The franchisor also has a liquid cash requirement of at least $500,000 (a few exceptions apply). A cash requirement is the amount of money a franchisor requires a franchisee have in savings and be able to access quickly in case of emergencies and unexpected situations when starting the business. It also accounts for regular living expenses until the franchise unit begins turning a profit large enough for the franchisee to garner an adequate take-home wage.

Why is McDonald's so popular?

Why is McDonald’s so popular? One reason is, while it’s not the biggest operation in the world by total number of units—that distinction belongs to 7-Eleven, it still regularly brings in the most revenue for franchises year-after-year.

What is a BFL franchise?

BFL Franchises: ‘Business Facilities Lease’ franchises grant franchises with leases that include the business facilities.

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.