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How much money do I need to start a restaurant franchise?
Since the total cost varies from restaurant to restaurant, the minimum amount for a down payment will vary. Generally, we require a minimum of $500,000 of non-borrowed personal resources to consider you for a franchise. There are limited opportunities to enter the program with less cash available (primarily in rural or urban areas), and, in some situations, the financial requirements may be substantially higher depending on the specifics of the transaction. Individuals with additional funds may be better prepared for additional or multi-restaurant opportunities.
How much did McDonald's make in 2015?
Business insider named McDonald’s the number one fast-food franchise in a 2015 article with $35.4 billion dollars in sales
How many McDonald's restaurants were closed in 2015?
In 2015, McDonald’s planned to close 184 restaurants in the U.S., which was 59 more than it planned to open, leading to the first time since 1970 that there was a decrease in the number of McDonald’s opened in the United States.
What is the down payment for a restaurant?
Financial qualifications: An initial down payment is required when you purchase a new restaurant (40% of the total cost) or an existing restaurant (25% of the total cost). The down payment must come from non-borrowed personal resources, which include cash on hand; securities, bonds, and debentures; vested profit sharing (net of taxes); and business or real estate equity, exclusive of your personal residence.
How much does it cost to franchise a franchise?
Average cost of new franchise: At least $1 million roughly, with a minimum of $500,000 in cash and non-borrowed resources. Other sources state $750,000 minimum in liquid assets. You must be able to cover 40% of the costs of a new franchise location. You must be able to pay cash for at least 25% of the cost of an existing franchise, with the rest financed over at most 7 years.
Where is McDonald's located?
McDonalds has been franchising since it opened in 1955 their headquarters is located in Oak Brook, Illinois.
Is McDonald's still a business?
In the end, owning a McDonald’s franchise is still a business which means you take on risk for potentially significant gains or losses. But if you spend 40 hours a week and only keep tabs on one location, it might really feel like you bought a job. These statistics help explain why most franchisees own multiple locations; Businessweek says the average is six.
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.