how to open a mcdonalds franchise

How to open a McDonald's franchise?

1. Ensure you have adequate capitalization. In order to open a McDonald's franchise, you must have a net worth of more than $464,500.
2. Appreciate the investment required for a restaurant franchise. ...
3. Evaluate your prior experience and strengths. ...
4. Assess market availability. ...
5. Submit your application. ...
6. Receive approval & opening your McDonald's franchise. ...

Full Answer

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 much is it to buy a McDonald's franchise?

Purchasing a McDonald's franchise, either from an existing franchisee or by opening a new restaurant, requires a large investment. While the initial franchise fee is $60,000 plus GST, you will generally need at least $1 million in order to purchase a McDonald's franchise, and may need more if you plan on opening a new location.

Can you make money starting a franchise?

The franchisor doesn’t actually make much money if any at all from the upfront fee that a franchisee pays to purchase a franchise business. The investment cost of a franchise opportunity is simply there to cover the cost for the franchisor in terms of bringing a new franchisee on board. Making strong investments in new franchisees will ensure they get off to a great start. The following fees are usually covered:

What are the steps to open a franchise?

Steps to Open a Franchise

• Choose a franchise. This is arguably the most important step. ...
• Connect with the franchisor. Reach out to the company (there is likely a form, like this one ), to get more information about the company. ...
• Choose a location. What area will your franchise location serve? ...
• Create a business plan. ...
• Open your business. ...

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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 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.

What is the dollar menu?

The dollar menu is a hot button item for franchise owners, as many find themselves losing money do to the heavily marked down prices. Unfortunately, you cannot get rid of or alter the dollar menu during your time as a franchise owner. ...

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.

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).

Why do people start their own McDonald's franchise?

And these franchisees have a good reason for starting their own franchises. Opening up a restaurant brings on a lot of uncertainty, the people in the area could end up not liking your menu items, customers could dislike the atmosphere of your store, employees can miss shifts which will cause a drop in efficiency, etc. But if you’re opening a McDonald’s franchise, then you can let go of any worries of people not being attracted to your food offerings or your atmosphere. Every American (along with a good amount of people overseas) have had McDonald’s at one point or another, which will lead you to not having to wait a couple of months or even years to get your business off the ground, people will be flocking the very first day.

How much money do you need to franchise McDonald's?

But you’ll find that McDonald’s generally will require a minimum of $500,000 of non-borrowed personal resources in order to be considered for a franchise. If you don’t have the proper funds, then there are still limited opportunities to enter the program with less cash, though these opportunities are typically in rural or urban areas.

How long does it take to become a McDonald's franchise owner?

For franchise owners, this includes a 9-18 month program working at a restaurant so they can become proficient in all aspects of running the store.

How many countries does McDonald's operate in?

If you are interested in global expansion, then you’re in luck. McDonald’s does business in over 100 countries all around the world and there are clear pathways to building your own franchise in an international location. Just keep in mind that there are still a number of countries where McDonald’s has no presence and there is no promise that they are going to expand there anytime soon. To be assured that the country you’re looking to move into is operable for a McDonald’s franchise, click here.

What is franchising a restaurant?

A franchise is when a business is technically owned by a person (the franchisee) but is overseen by a larger entity (the franchisor). From McDonald’s to Waffle House and everything in between, many major restaurant chains offer people the opportunity to jumpstart their entrepreneurial goals by opening up a restaurant under the name of a major franchisor.

Is McDonald's a household name?

Extensive business experience: Despite that McDonald’s is a household name with a large fanbase, you still need to understand what you’re doing in order to be successful. It’s recommended that you have demonstrated success in the ownership or management of multiple businesses.

Do you need a strong business sense to own McDonald's?

Your business savvy: At the end of the day, the McDonald’s brand can only take you so far. You still need a strong business sense in order to ensure the profitability of your business. Before you make the investment into your own McDonald’s franchise, make sure to gain some experience in restaurant ownership so you know what you’re doing and have the necessary background.

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.