how to own a mcdonald's franchise in india

by Lillie Casper Published 2 years ago Updated 1 year ago

If you want to take McDonald's franchise in West and South India then you have to approach Hardcastle Restaurants Pvt. On the other hand, if you want to open a franchise in North and East India, then you have to contact Vikram Bakshi Connaught Plaza Restaurant Private Limited Company. From there, its franchise is given for twenty years.

Full Answer

Is it worth it to buy a McDonald’s franchise?

Acquiring a McDonald’s franchise is a substantial investment and during the application process we will review the level of investment necessary to purchase a restaurant based on a number of factors, and we will discuss with you the financial resources and lending programs available to assist you in getting started.

Who is the owner of McDonalds in India?

McDonalds franchise has been giving the development licensee status and in India which is as of now in the hands of two entrepreneurs Amit Jatia, Vice Chairman, Hardcastle Restaurants Pvt. Ltd for West and South India and Vikram Bakshi's Connaught Plaza Restaurants Private Limited for North and East India.

How to open a franchise in North India?

So, if you are planning to open a franchise in North India, you need to contact Mr Vikram Bhakshi. To application and approval process is a bit lengthy as detailed below: 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.

What is the franchise fee of a restaurant in India?

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. 2.

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How much does a Mcdonalds franchise cost in India?

A McDonald's franchise requires a total investment of ~Rs 6.6 Cr-Rs 14 Cr, with liquid capital available of Rs 5 Cr. The franchise fee is Rs 30 lakh. As a franchise, you will be charged a service fee of 4% of total sales. NewsletterSIMPLY PUT - where we join the dots to inform and inspire you.

Is McDonald's franchise profitable in India?

The profit margin of a McDonald's restaurant in India is about 20%. This means that for every ₹ 1 lakh you make in sales, you can expect to earn a profit of ₹ 20,000.

Who owns MCD franchise in India?

WDL operates McDonald's restaurants across West and South India through the wholly owned subsidiary Hardcastle Restaurants (HRPL). It currently operates 326 McDonald's restaurants and 262 McCafé locations across 47 cities. The network offers direct employment to around 10,000 people.

How much does it cost to own a McDonald's franchise?

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. Existing franchise prices can cost upwards of $1 million or more.

What is the cost of KFC franchise in India?

Capital Investment for a KFC Franchise in India The estimated start-up cost can range from ₹ 96 lakhs to ₹ 2 crores. Also, ₹ 36 lakhs is required as a franchise fee to become a KFC franchise owner in India. In addition, a royalty fee of 5% is needed to be paid to the company on gross monthly receipts.

Which is the most profitable franchise in India?

Top 10 Profitable Franchise Business Opportunities in IndiaDomino's franchise store.Dr Lal Pathlab Franchise.FirstCry Franchise Store.VLCC Franchise Salon.Kidzee Franchise.Jockey Franchise Store.Delhivery.Lakme Salon Franchise.More items...•

Who is the CEO of McDonald's in India?

Ranjan will continue to report to Sanjeev Agrawal, chairman, McDonald's India North and East. Ranjan joined the company in 2020 as senior director and was named as the chief operating officer in 2021.

Who owns KFC franchise in India?

Actually, KFC's parent company is Yum! Brands, Inc., and it is one of the world's largest restaurant companies in the system restaurants category.

Who is Vikram Bakshi?

Vikram Bakshi was the Managing Director of this joint venture, he was also MD of CPRL[1]. In a joint venture agreement, there was clause 7e, which stated 4, provisions which should be satisfied to be MD of the joint venture. Those conditions were as follows: A person should reside in the NCR region.

How much is a KFC franchise?

For non-traditional KFC outlets, KFC charges an initial license fee of $22,500. For traditional KFC franchise agreements, the franchise (or initial license) fee is $45,000 split into the deposit fee and the option fee.

Is owning a Mcdonalds profitable?

With an average initial investment of about $1.8 million, it would take you 8.5 years or less to recoup the McDonald's franchise cost with a 10% or more profit margin. These figures are calculated from the 2020 average median net sales from a McDonald's franchise in the US, which is about $2.9 million.

What is the most profitable franchise?

Most Profitable FranchisesDunkin'7-Eleven.Planet Fitness.JAN-PRO.Taco Bell.Orangetheory Fitness.Great Clips.Mac Tools.More items...•

Is KFC franchise profitable in India?

KFC franchise business is one of the most challenging yet profitable and rewarding options if you are searching to open a retail food business. But before jumping into the franchise business, go through a thorough analysis and decide based on your skills, a sharp experience.

What is the failure rate of a McDonald's franchise?

The 50th best default rate is at 25%, and the 50th worst default rate list starts at 52%. This means, that for McDonald's and other top franchises, between a quarter and about half of their franchisees failed.

What is the best franchise to buy in India?

How much does a franchise owner make in India?

Franchisee Owner salary in India ranges between ₹ 1.2 Lakhs to ₹ 15.0 Lakhs with an average annual salary of ₹ 4.8 Lakhs.

Is the menu of a franchise outlet fixed or flexible?

Depending upon the locality and size of the store, few items on your menu would be fixed and you have to offer them at your outlet. Other than thos...

How long will it take to break even?

If you read the Franchise Disclosure Document (FDD) provided by McDonald’s, you will get to know that they have provided an estimated time when you...

Is there any training for staff and owners to operate McDonald’s franchises?

Yes, after you apply for McDonald’s franchise, you will be required to undergo training provided by McDonald’s, and only after completing the train...

Can I apply for a franchise for someone else?

No, you cannot apply for someone else, each individual has to apply for himself or herself. Also, McDonald’s does not allow a partnership, applican...

What is a McDonald's franchise owner?

Franchise owners of McDonald’s are called “Owner Operators” and gain a lot by joining the most-loved brand in the world. When you choose to start a McDonald’s franchise, you literally gain the advantages listed below:

What is the USP of McDonald Franchise?

One of the main unique selling propositions of McDonald’s is its attitude and respect towards the local culture. The famous saying goes like “Be a Roman, while in Rome.” Similarly, McDonald’s understands the culture of its local environment and plays accordingly. It makes every effort to source all raw materials from the local market.

How many pages are there in McDonald's franchise disclosure?

Before you start applying for a franchise, you need to read the Franchise Disclosure Document from McDonald’s. It is a 375-page document that provides transparent information about the costs, location, eligibility, etc. You can either purchase the FDD or do a simple google search and download it.

What happens if you clear the phone interview at McDonald's?

Once you clear the phone interview, you will be sent to any McDonald’s franchise nearby to learn about the working of a franchise.

How many hamburgers does McDonald's sell?

It serves around 69 million customers through its 37000 outlets across the globe. It is estimated that McDonald’s sells about 75 hamburgers, 9 million pounds of fries per minute. The foodservice industry is always a profitable business in India.

Why is McDonald's so popular?

Another reason that McDonald’s is being liked by families around the world is that it strives hard to provide the best quality and extraordinary service. The environment is perfectly clean and pleasant to offer a comfortable dining experience to its customers. It also mainly believes in giving back. Hence, you can see McDonald’s participating in all events hosted in the local community to show they care.

When did McDonald's buy McDonald's?

Seeing a huge success, he eventually acquired McDonald’s in 1961. The brand has been identified with various brand logos over the years, including the Big Mac, Egg McMuffin, Happy Meals, and Chicken Nuggets.

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:-

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.

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 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.

Can you apply for McDonald's franchises for someone else?

Ans. No, you cannot apply for someone else, each individual has to apply for himself or herself. Also, McDonald’s does not allow a partnership, applicants must be completely capable of owning franchises individually.

Can you have fixed menu items at your store?

Ans. Depending upon the locality and size of the store, few items on your menu would be fixed and you have to offer them at your outlet. Other than those fixed items, your menu could be flexible as per your convenience or store demand.

How did McDonald's enter the corporation?

Most McDonald’s owner/operators have entered the corporation by purchasing an existing restaurant.

How many pages are there in the McDonald's franchise disclosure document?

Before you settle on the choice to open a McDonald's franchise, you need to look over a copy of their Franchise Disclosure Document (FDD). This is a 375 page documents that gives a broad outline of the rights and responsibilities of a McDonald's franchise proprietor.

Is McDonald's a franchise?

McDonald's has been a franchising organization since 1955, and has depended on its franchisees to assume a noteworthy part in the framework's success .