How to open a McDonald's franchise?
- Ensure you have adequate capitalization. In order to open a McDonald's franchise, you must have a net worth of more than $464,500.
- Appreciate the investment required for a restaurant franchise. ...
- Evaluate your prior experience and strengths. ...
- Assess market availability. ...
- Submit your application. ...
- Receive approval & opening your McDonald's franchise. ...
Full Answer
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 to become a McDonald's franchisee?
Take the First Step on Your Journey to Becoming an Owner/Operator
- McDonald's Franchise Costs & Requirements. 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 ...
- Financing. We require that the buyer pay a minimum of 25% cash as a down payment toward the purchase of a restaurant.
- Ongoing Fees. ...
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 many franchises does McDonald have?
Since opening in California in the 1950s, McDonald's has expanded considerably throughout the world. At present, McDonald's operates 36,899 restaurants, 5,669 of which are company-owned and 31,230 of which are franchised. Its total property owned is said to have a value between 16 and 18 billion dollars.
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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).
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.
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 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.
Can you switch up napkins at McDonald's?
You cannot, therefore, switch up the kinds of napkins or ketchup packets you use, as unity is important to building a chain. If McDonald's is having a national special or releasing a new product, your establishment will have to comply with prices and dates set by the corporation.
Why does McDonald's make the decision to develop a location?
We make the decision to develop a location because we believe it will be a success. McDonald’s manages all the site evaluation, acquires the property and constructs the building. After making the decision to develop a site, McDonald’s awards the franchise to the most qualified candidate.
How many McDonald's are there in the world?
McDonald’s is the world’s leading global foodservice retailer with over 38,000 locations in over 100 countries. Approximately 93% Of McDonald’s restaurants worldwide are owned and operated by independent local business owners.
Does McDonald's predict restaurants?
The availability of restaurants in specific areas will be discussed during your initial interview. McDonald’s can not predict which restaurants will be available when your training is complete. Flexibility to relocate for a restaurant opportunity may be required.
Is McDonald's an equal opportunity franchise?
McDonald's is an equal opportunity franchisor by choice. McDonald’s is seeking individuals who are capable of operating multiple locations. Candidates who have successfully operated multiple businesses may be suited to operating several McDonald’s franchises.
Does McDonald's have international franchises?
McDonald’s franchises restaurants in many international markets, and decisions relating to the selection of candidates are made locally by the management in the country where the restaurant is located. For interest in specific markets regarding international franchising, please see the list of contacts and franchising information on the Global Franchising page of this web site. Links to individual market web sites are provided where available.
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.
Overview
More than 80 percent of McDonald’s restaurants worldwide are owned and operated by franchisees. The company lists consistently in the Top 10 Franchises in the world in Entrepreneur Magazine, and Franchise Times Magazine ranks McDonald’s Number 1 among the top 200 franchises.
Related
McDonald's is listed in the Franchise Directory under the Food category. It's also listed in the section for Franchises Under $1,000,000 .
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.
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.
What is a BFL franchise?
BFL Franchises: ‘Business Facilities Lease’ franchises grant franchises with leases that include the business facilities.
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.
