Also, how much do they make per year? Further, if anyone actually owns one here, what is it like running it?
Anyone know how much a McDonalds franchise costs?
- Thread starter imported_Tick
- Start date
MrChad
Lifer
- Aug 22, 2001
- 13,507
- 3
- 81
BoomerD
No Lifer
- Feb 26, 2006
- 65,533
- 13,890
- 146
http://money.howstuffworks.com/franchising1.htm
"Imagine that you're opening your own McDonald's. To do this, you have to buy a McDonald's franchise. In order to qualify for a conventional franchise, you have to have $175,000 (not borrowed). Your total costs to open the restaurant, however, will be anywhere from $430,000 to $750,000, which goes to paying for the building, equipment, etc. Forty percent of this cost has to be from your own (non-borrowed) funds.
You'll pay an initial franchise fee of $45,000 directly to McDonald's. The other costs go to suppliers, so this is the only upfront fee you pay to McDonald's. Then, you'll go through a rigorous nine-month training period where you'll learn about the McDonald's way of doing things -- things like their standards for quality, service, value, formulas and specifications for menu items, their method of operation, and inventory control techniques. You'll have to agree to operate the restaurant from a single location, usually for 20 years, following their guidelines for decor, signage, layout and everything else that makes McDonald's McDonald's.
Once you've completed training and are ready to go, McDonalds will offer you a location they've already developed. The exterior of the building will be complete, but you will have to take care of interior additions such as kitchen equipment, seating and landscaping. You'll get constant support from a McDonald's Field Consultant, who can advise you on details and will visit regularly. You'll pay McDonald's a monthly fee of 4 percent of your sales, and either a flat base rent or a percentage rent of at least 8.5 percent of your sales. How much money you make depends on many things, including the location and its popularity, the efficiency of your operating costs, and your ability to manage and control the business.
Think of franchising as paying someone for his or her business strategy, marketing strategy, operations strategy, and the use of his or her name. That's pretty much what franchising is -- you are establishing a relationship with a successful business so you can use its systems and capitalize on its existing brand awareness in order to get a quicker return on your own investment. You are using its proven system and name, and running it by its rules.
Are you still your own boss? In some respects, no. You still have to answer to someone else and follow his or her direction. You don't really own the business; you own the assets you've purchased in order to establish the business. "
http://www.mcdonalds.com/corp/about/mcd_faq.html
"Q. Can you still get a McDonald's franchise (in the United States) and how much does it cost?
A. Yes, McDonald's continually seeks qualified individuals to become franchisees, and has added approximately 100 new franchisees to the system each year for many years. There are an increasing number of restaurant opportunities available in small towns and in areas representative of a diverse customer base. An individual must have a minimum of $175,000 of non-borrowed personal resources to qualify financially."
http://www.mcdonalds.com/corp/franchise/purchasingYourFranchise.html
"Most Owner/Operators enter the System by purchasing an existing restaurant, either from McDonald?s or from a McDonald's Owner/Operator. A small number of new operators enter the System by purchasing a new restaurant.
The financial requirements vary depending on the method of acquisition.
Financial Requirements/Down Payment
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 cost). The down payment must come from non-borrowed personal resources, which include cash on hand; securities, bonds, and debentures; vested profit sharing (net of taxes); and business or real estate equity, exclusive of your personal residence.
Since the total cost varies from restaurant to restaurant, the minimum amount for a down payment will vary. Generally, we require a minimum of $200,000 of non-borrowed personal resources to consider you for a franchise. Individuals with additional funds may be better prepared for additional or multi-restaurant opportunities.
Financing
We require that the buyer pay a minimum of 25% cash as a down payment toward the purchase of a restaurant. The remaining balance of the purchase price may be financed for a period of no more than seven years. While McDonald?s does not offer financing, McDonald?s Owner/Operators enjoy the benefits of our established relationships with many national lending institutions. We believe our Owner/Operators enjoy the lowest lending rates in the industry.
Ongoing Fees
During the term of the franchise, you pay McDonald?s the following fees:
Service fee: a monthly fee based upon the restaurant?s sales performance (currently a service fee of 4.0% of monthly sales).
Rent: a monthly base rent or percentage rent that is a percentage of monthly sales."
"Imagine that you're opening your own McDonald's. To do this, you have to buy a McDonald's franchise. In order to qualify for a conventional franchise, you have to have $175,000 (not borrowed). Your total costs to open the restaurant, however, will be anywhere from $430,000 to $750,000, which goes to paying for the building, equipment, etc. Forty percent of this cost has to be from your own (non-borrowed) funds.
You'll pay an initial franchise fee of $45,000 directly to McDonald's. The other costs go to suppliers, so this is the only upfront fee you pay to McDonald's. Then, you'll go through a rigorous nine-month training period where you'll learn about the McDonald's way of doing things -- things like their standards for quality, service, value, formulas and specifications for menu items, their method of operation, and inventory control techniques. You'll have to agree to operate the restaurant from a single location, usually for 20 years, following their guidelines for decor, signage, layout and everything else that makes McDonald's McDonald's.
Once you've completed training and are ready to go, McDonalds will offer you a location they've already developed. The exterior of the building will be complete, but you will have to take care of interior additions such as kitchen equipment, seating and landscaping. You'll get constant support from a McDonald's Field Consultant, who can advise you on details and will visit regularly. You'll pay McDonald's a monthly fee of 4 percent of your sales, and either a flat base rent or a percentage rent of at least 8.5 percent of your sales. How much money you make depends on many things, including the location and its popularity, the efficiency of your operating costs, and your ability to manage and control the business.
Think of franchising as paying someone for his or her business strategy, marketing strategy, operations strategy, and the use of his or her name. That's pretty much what franchising is -- you are establishing a relationship with a successful business so you can use its systems and capitalize on its existing brand awareness in order to get a quicker return on your own investment. You are using its proven system and name, and running it by its rules.
Are you still your own boss? In some respects, no. You still have to answer to someone else and follow his or her direction. You don't really own the business; you own the assets you've purchased in order to establish the business. "
http://www.mcdonalds.com/corp/about/mcd_faq.html
"Q. Can you still get a McDonald's franchise (in the United States) and how much does it cost?
A. Yes, McDonald's continually seeks qualified individuals to become franchisees, and has added approximately 100 new franchisees to the system each year for many years. There are an increasing number of restaurant opportunities available in small towns and in areas representative of a diverse customer base. An individual must have a minimum of $175,000 of non-borrowed personal resources to qualify financially."
http://www.mcdonalds.com/corp/franchise/purchasingYourFranchise.html
"Most Owner/Operators enter the System by purchasing an existing restaurant, either from McDonald?s or from a McDonald's Owner/Operator. A small number of new operators enter the System by purchasing a new restaurant.
The financial requirements vary depending on the method of acquisition.
Financial Requirements/Down Payment
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 cost). The down payment must come from non-borrowed personal resources, which include cash on hand; securities, bonds, and debentures; vested profit sharing (net of taxes); and business or real estate equity, exclusive of your personal residence.
Since the total cost varies from restaurant to restaurant, the minimum amount for a down payment will vary. Generally, we require a minimum of $200,000 of non-borrowed personal resources to consider you for a franchise. Individuals with additional funds may be better prepared for additional or multi-restaurant opportunities.
Financing
We require that the buyer pay a minimum of 25% cash as a down payment toward the purchase of a restaurant. The remaining balance of the purchase price may be financed for a period of no more than seven years. While McDonald?s does not offer financing, McDonald?s Owner/Operators enjoy the benefits of our established relationships with many national lending institutions. We believe our Owner/Operators enjoy the lowest lending rates in the industry.
Ongoing Fees
During the term of the franchise, you pay McDonald?s the following fees:
Service fee: a monthly fee based upon the restaurant?s sales performance (currently a service fee of 4.0% of monthly sales).
Rent: a monthly base rent or percentage rent that is a percentage of monthly sales."
What is the best type of franchise to open? I would think McDonalds would be the best. You never see a slow McDonalds unless it's in some 1 horse town.
MrChad
Lifer
- Aug 22, 2001
- 13,507
- 3
- 81
I would imagine that it depends on your location, your target clientele and the proximity of other franchises in your area.
McDonalds seem to be everywhere. I imagine its difficult to find a spot that doesn't have a McDonalds near by.
Chipotle's are still wildly popular, although they've been popping up almost everywhere too.
If it were me, I would look into an unusual or regional franchise looking to expand. Potbelly sandwiches are fantastic, but their market is mostly limited to the midwest. I think some east or west coast franchises could do really well in the right locations.
Potbelly didn't impress me, but the restaurant "which which" I loved. I had so many more choices and it was a great business model.
TRENDING THREADS
-
Discussion Zen 5 Speculation (EPYC Turin and Strix Point/Granite Ridge - Ryzen 9000)- Started by DisEnchantment
- Replies: 24K
-
Discussion Intel Meteor, Arrow, Lunar & Panther Lakes Discussion Threads
- Started by Tigerick
- Replies: 19K
-
-
-
Facebook
Twitter