McDonald’s Corp, one of the world’s largest and most popular fast-food restaurant chains, with global revenues probably beyond belief, tens of thousands of restaurants around the globe and tens of thousands of employees in more than 120 countries. It’s probably superfluous to praise the popularity of their products, as I’ve witnessed that even at Christmas, the line of cars waiting at the drive-through stretched for dozens of feet and the physical restaurants were absolutely full. On top of that, the delivery people were also waiting for their orders to be packed.
If you’ve got some spare change (although it’s best to keep it on a card, possibly in euro currency because, nah, inflation is devaluing our national currency), and we’re talking a pretty big sum, you can open a McDonald’s franchise yourself. If you’re interested in this, read this article below for some general information you should consider.
How much does it cost to open a McDonald’s franchise?
Colossally, I would say. However, about 80% of McDonald’s restaurants are under the independent management and operation of people who own franchises and have agreements with this popular restaurant chain. Franchisees, the owners themselves, have to pay monthly franchise fees and rent to the company from which they own the franchise.
In this case, we’re talking about a sum that amounts to at least $750,000, or US dollars. Franchisees must both hold this amount and demonstrate its viability, and prove that it is not borrowed or constitutes credit. Moreover, this is just the amount required to obtain the McDonald’s franchise. From here to an actual start-up is a long way, involving the investment of another $1.5-3 million or so (you can still go ahead and apply for a bank loan for these expenses).
If you want to opt to buy an existing restaurant, you need to have a down payment of 25% of the total cost of the restaurant in question, which you must also pay. In the case of a new restaurant, you must have 40% of the deposit. As a McDonald’s franchisee, you will be charged a service fee of 4% of total sales.
Can I really open my own McDonald’s restaurant?
Obviously, as mentioned above, but you can see for yourself how difficult this can be. McDonald’s itself only owns a small percentage of the total number of restaurants in the world, as most of them operate franchises, which means that McDonald’s restaurants are run, managed and owned by one person. By purchasing the franchise, McDonald’s allows these individuals the freedom to legally use the brand name, specific logo, product recipes and the like.
More than just the security of a “business”, the McDonald’s franchise allows you to take advantage of the way the official company handles its customer relationships, being already popular, with proven marketing and products that many people like. However, people who run a franchise restaurant individually have to pay certain fees to McDonald’s, which, as I said, amount to 4% of the revenue.
In other words, people who own McDonald’s franchises are allowed to use absolutely everything that McDonald’s stands for, with the obligation to redirect a certain percentage of the income to the parent company. If you have the money, it certainly proves to be a more than inspired investment, as, especially in recent years, the sales of such restaurants have increased considerably. If you know what to buy, where to locate your restaurant and other things that require professional management, you can certainly get your investment off fairly quickly.
Where can I get a McDonald’s franchise?
More than just having the money, to apply for a McDonald’s franchise you need to already have some experience in running entrepreneurial businesses and demonstrate the viability of a steady and optimal income. You can apply for the franchise by thoroughly completing an application available online. If your application is successful, you will be required to undergo a telephone interview as well as some personality and skills tests.
Then, you’ll have to work for a few days in a McDonald’s restaurant where you’ll be constantly observed, then you’ll have an interview to demonstrate what you’ve basically learned. Finally, if you pass all of the above tests, you’ll be interviewed at a nearby McDonald’s location, and this is the final step where the company will make a final decision on whether to open a franchise.
It’s not easy, but it can certainly prove to be a life-changing and extremely inspired choice. If you have the money and are one of those people who already have some experience of entrepreneurship, perhaps you should give it a try. What do you think? Is it worth buying the McDonald’s franchise?