McDonald’s Franchise

Starting a franchise with McDonald’s restaurants can be a rewarding and life-changing opportunity, should you be willing to invest the time and money into getting one going. Before you begin though, there are a few things about the company and franchising that may be of interest to know.

The McDonald’s Franchise System

Only a small number of new restaurants are opened by new operators, most will purchase an existing restaurant. Both the company or an existing franchisee could be a likely seller. New stores are usually opened by operators with multiple stores.

The McDonald’s Corporation requires an investment of at least $250,000 to consider you for a franchise. This has to be non-borrowed money as well, and as such this is a pricey business to buy into. If you don’t have that kind of money, you should probably contact a consultant or do more reading to find another great franchise within your price range.

McDonald’s Corporation requires a minimum of $250,000 of non-borrowed personal resources to consider you for a franchise. In other words you need $250,000 cash on hand to just start the discussion process with McDonald’s. If you do not have $250,000 available click here to contact a franchise consultant who can recommend other great franchises in your specific price range. If you have $250,000 available read on…

Ongoing Fees and Franchising Costs

The franchising fee, or service fee, is based on the store’s sales performance, which is currently 4% of the monthly sales. In addition, McDonald’s Corp usually owns the property and often charges a monthly base rent often tailored around the monthly sales percentage. This can vary by store, and usually is different among stores even in the same city.

Other Requirements

In addition to the financial hurdle to overcome, there are a few other requirements McDonald’s expects it’s owner/operators to meet. Namely, you need to have good credit and significant business experience managing and/or owning other businesses. Other things are important as well, like having a solid business plan and the ability to manage people, finances and ongoing training requirements.