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Answering Your Most Asked Questions on McDonalds Franchise

Does owning a McDonald’s franchise sound like the perfect way to break away from your office job and take control of your future? It can be a highly rewarding opportunity for those who have the drive to succeed, but there are a few questions business owners should consider when evaluating the franchise’s potential. To make the transition easier, the International Franchise Professionals Group (IFPG) has gathered the most asked questions about McDonalds franchising – so let’s dive in.

1. What’s an example of the type of franchise opportunity McDonalds offers?

The fast-food chain is one of the biggest franchises in the U.S., with more than 38,000 locations worldwide. McDonalds offers restaurant franchises ranging from full- and mid-size restaurants to mobile and kiosks, food trucks, and the McCafé brand specialty outlets. Each franchisee is provided with business consulting, support materials, and guidance throughout the business’s lifecycle for more efficient operations.

2. What’s the capital investment I need to get started?

The total capital needed to open a new McDonalds franchise varies based on the size and location of the restaurant, as well as several other factors. However, according to the McDonalds website, the cost range is between $1.3 million and $2.2 million of total capital. This typically breaks down to $45,000 to $90,000 of liquid cash or other non-borrowed resources, as McDonalds requires new franchisees to have the money available in order to finance its projects. Additionally, McDonalds’ franchises may qualify for financing through the SBA (Small Business Administration) and other approved lenders.

3. What are the fees associated with running a franchise?

In addition to the initial capital investment, McDonalds requires its franchisees to contribute 5% of their sales revenues to corporate upon the opening of the restaurant. They also include an annual royalty payment of 4% of gross sales. Franchisees must also pay an additional monthly fee for the use of the McDonalds logo and other marketing needs.

4. What type of support can I expect from McDonald’s?

As a McDonalds franchisee, you’ll get access to business coaching, restaurant operations support, financial guidance, and a network of over 38,000 franchisees. Additionally, you’ll be able to access an extensive development program with training and consulting for every step of the setup process.

5. What’s the franchising process timeline?

On average, it takes 12 to 24 months from the start of the franchising process to actually open up the restaurant. This includes the time it takes to complete the franchise application process, secure funding, and obtain government and landlord approval.

6. What are the criteria McDonald’s looks for in its applicants?

McDonalds looks for applicants who possess the financial and credit qualifications that allow them to successfully run their own business. They usually require their applicants to have the following qualifications: a minimum net worth of $500,000, liquid assets of at least $100,000, and a credit score of at least 650.

By taking the time to consider these questions, you’ll be better equipped to make the right decision for you and your family when weighing your options between different franchise opportunities. Becoming a McDonalds franchisee is a major business decision and requires a quality amount of time and research to decide whether the investment is a good financial fit for you.


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