Multi-Unit Franchise Experts

A group of franchisees researching a list of the best franchises to own in the US

Exploring McDonald’s Franchising Opportunities

Investing in a business can feel like a daunting task, especially when the business you’re considering is a McDonald’s franchise. The global burger chain can offer a wealth of opportunity, but also involves a major financial commitment and detailed knowledge of the franchise industry. If you’re thinking of becoming a McDonald’s franchisee but don’t exactly know what to expect, don’t worry, you’re not alone. To help get you started, here are the answers to some of the most commonly asked questions about McDonald’s franchising.

What Is a Franchisor?

In the business realm, a franchise refers to the relationship between two entities: the franchisor and the franchisee. The franchisor is the company selling the franchise – in the case of McDonald’s, this would be the McDonald’s Corporation. As the franchisor, McDonald’s will provide the franchisees with a range of benefits that include a trademark logo, operating system, access to a proven business plan, and marketing and advertising support.

What Is a Franchisee?

A franchisee is the buyer who purchases rights to own and operate a business from the franchisor. In many ways, the franchisee decides how the business operates while the franchisor provides guidance, support, and training to the owner. To own a McDonald’s franchise, the franchisee must meet the company’s qualifications, which involve their net worth, liquid asset amount, business experience, and record of success in business. The franchise fee itself costs around $45k, and that’s not including the cost of the restaurant’s buildout.

What Are the Benefits of Owning a McDonald’s Franchise?

The reasons people choose to invest in a McDonald’s franchise are vast. From top of the line training to reliable support, McDonald’s offers franchisees the opportunity to own a business with less financial risk. The franchising system also provides franchisees with access to a well-known name and proven business model. Additionally, many franchisees report being able to generate a handsome return on their franchise investments.

What Do I Need to Know About McDonald’s Franchise Contracts?

McDonald’s franchises are governed by a franchise license agreement, or FLA. This document is an important part of the contract between the franchisor and the franchisee, and outlines the responsibilities and obligations of ownership. It is important to understand the specific terms and conditions laid out in the FLA, as well as any expectations or changes that McDonald’s may introduce to the agreement over time.

What Is the Process Like for Opening a McDonald’s Franchise?

When purchasing a McDonald’s franchise, there are a few core steps that must be taken in order to achieve success. First and foremost, the franchisee must have a sound financial plan for their franchise. Next, they must secure the location and find the right real estate partner to help them build out the store. Afterward, they must file for the appropriate permits and then launch their business. The last step is to ensure continued operations are ran smoothly and remain in line with McDonald’s business standards.

Are There Any Hidden Costs Involved With Owning a McDonald’s Franchise?

Any time you invest in a business, you must consider your expenses and the potential hidden costs of ownership. These are costs in addition to the franchise fee, like the build out, staffing, and monthly rental payments. McDonald’s requires that all franchisees carry general liability insurance to protect their business from potential losses. Additionally, you may have to pay additional insurance premiums, such as workers’ compensation insurance, unemployment insurance, and disability insurance.

What Is the Partnership Between a Franchisee and the Franchisor?

McDonald’s works closely with its franchisees to share best practices and provide instruction on the McDonald’s system. Franchisees are encouraged to adhere to the business standards and expectations of McDonald’s to promote continuity throughout all locations. Business owners are required to attend company training programs and conferences to ensure that they are familiar with McDonald’s brand and standards, as well as any new products the company may launch. McDonald’s also provides a platform to help franchisees connect with other business owners and develop their networks.

What Support Is Provided by McDonald’s?

McDonald’s invests in comprehensive resources for its franchisees, which include custom training materials, franchisee support websites, and a toll-free hotline. Franchisees also have access to field representatives and experienced business consultants that provide guidance and assistance in a variety of areas such as marketing, operations, and compliance.

Last reflections

McDonald’s franchises offer a wealth of opportunity but also involve a major financial commitment and detailed knowledge of the franchise industry. Potential franchisees should thoroughly research the McDonald’s system so that they can make an informed decision about becoming a business owner. The International Franchise Professionals Group can help prospective owners answer questions they may have and understand the ins and outs of franchising, so consider seeking our help if you’re serious about joining the McDonald’s family.





Download your free copy!

Explore multi unit franchising opportunities and uncover the mysteries of franchising in this e-book.

And learn to evaluate franchise concepts like an insider.

Request a Franchise Evaluation