The first step is to send a franchise application ant one of the two authorized persons based on the region you wish to open the franchise. Once your application is reviewed along with the other documents you submit, you will be interviewed over the phone.
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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 does STO stand for?
3. STO/STR Locations - STO stands for Small Town Oil Locations and STR stands for Small Town Retail Locations. STOs are located on highways or near rest areas and petrol pumps. STRs are located near large department stores or malls in small towns. These will come with dining areas and a full range of menus.
What is a BFL franchise?
4. BFL Franchise - Business Franchise Leases are provided to corporations to establish canteens in their offices. Such outlets are initially offered on a 3-year lease but can be extended depending upon response and maintenance.
How to get an idea of McDonald's terms and conditions?
To get an idea of the terms and conditions of owning a McDonald’s franchise, you can go through their Franchise Disclosure Document, which is a document of about 350-400 pages. To understand it, you might need to talk to your lawyer and accountant as well. You will get a good idea about franchise working and T&C from this document.
How many types of franchises does McDonald's have?
McDonald’s offers 4 types of franchises depending upon the locality and size of the store you would like to open. McDonald’s also charges a franchise fee and lease agreement as per the size of the store you would like to open. Here are 4 franchises, their fees, and lease agreements:-
What is a traditional restaurant?
1. Traditional Restaurant - These are outlets in malls, food courts, corporate or residential buildings, etc. These are large stores that will offer a whole range of menu and sitting areas for dine-in and parties. Its franchise fee is around 30 Lakhs INR. Such lease agreements are for 20 years.
How many McDonald's stores are there?
Its golden arches are well recognised everywhere. It has its footprints in over 100+ countries. Currently, McDonald’s has around 38,000 stores and serves 7 crore people every day. These numbers are huge enough to let you know why McDonald’s is one of the best options when it comes to owning a restaurant as a franchisee.
How long does it take for McDonald's to break even?
As per FDD, it will take you around 2-3 years to break even and after that most of the revenue will be net profit.
How much money do you need to open a McDonald's franchise?
According to the company, the total investment for a franchisee would typically range from $950,200 to $1.8 million (this includes the franchising fee, equipment, building, and other things needed for the operation). After setting the business, entrepreneurs are still required to pay an annual royalty tax which is 12.5 percent of their gross profits. For 20 years, the binding contract will still be followed and after this period, franchisees can renew this if they would want to.
How much liquidity does McDonald's require?
Meanwhile, the fast-food giant requires its franchisees to have cash liquidity worth $250,000. Another requirement for them is to have a business experience that will allow them to handle their chains effectively. After qualifying as a franchisee, McDonald’s will train entrepreneurs for one week that will teach them more skills on how to manage their business.
How many McDonald's are there in the world?
McDonald's is the biggest fast-food chain in the world that it boasts more than 30,000 restaurants in 119 countries. With this unrivaled popularity, entrepreneurs who will franchise to McDonald's will most likely succeed in the business; meanwhile, this is how to start McDonald's franchising.
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Does McDonald's still have customer support?
After becoming a franchisee, the owners of McDonald’s fast food chain will still receive support from the corporation. There will be customer care support (online, toll-free phone line) which can help them in case they have encountered some problems in their business.
Can McDonald's open to investors?
Meanwhile, the corporation is allowing interested investors to open a McDonald's restaurant only at places approved by them.
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.
