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| McDonald's Franchise Costs & Terms |
McDonald's Franchise Costs & Terms
Independent legal and professional advice should be sought before investing in any company's franchise.
Description of McDonald's franchise
McDonald's Corporation is a world-renowned chain systems company. The McDonald's franchisor system develops a system of restaurants, operates them, franchises them, and provides superior services to its customers.
A brief history of McDonald's
"McDonald's is one of the most popular and successful fast food American restaurant chain systems companies in the world. It is a company founded 70 years ago. It was started in 1940 by two brothers named Dick and Mac. The restaurant is named after him. "McDonald's" emerged as a fast-growing company in 1954, seven years later, and continues to grow in the fast food chain today, in almost 120 countries around the world. There are over 30,000 McDonald's restaurants, most of them located in the United States.
The McDonald's system produces and sells a menu of expensive food. McDonald's Company allows franchisors to run a McDonald's restaurant business in an ideal location.
The McDonald's franchisor offers a variety of franchises to its customers
Traditional Restaurant:
This type of franchise is allowed to open on free standing buildings, store fronts, food courts and other busy places. Which offers high quality food and services to the public.
Satellite Locations Restaurant:
This type of franchise is allowed to operate franchises at airports, universities, hospitals and other popular locations. These restaurants may also offer non-McDonald's trademarked products, in some cases along with the McDonald's restaurant menu.
Small Town Location Restaurant:
This type of franchise is allowed to open at fuel stations and oil store locations. The full menu McDonald's restaurant is run within a shared space.
McDonald's Franchisor Training
McDonald's franchisor operates under the control of the University of Hamburger (HU). HU is an international training center for operating McDonald's systems. HU meets the needs of franchisees through various courses. All courses are designed to help different aspects of McDonald's restaurant practices help franchisors learn specific skills. These courses provide basic training that franchisees must complete in order to be eligible to run a McDonald's restaurant.
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| How much does it cost to open a McDonald's |
McDonald's Franchise Costs & Terms
When you buy a new McDonald's restaurant (40% of the total cost) or an existing restaurant (25% of the total cost) you have to make an initial down payment. This down payment must come from your own source, which includes cash.
In fact, low cost restaurants are different from high cost restaurants. The minimum amount for down payment will be different. You need at least $500,000 in unclaimed personal resources for a franchise. In fact, there are fewer opportunities to enter the program with less cash, and in some cases more money is required for the transaction. People who invest more get opportunities like extra or multi-restaurant.
Financing
We require the buyer to pay us at least 25% cash to purchase a McDonald's restaurant. However, he can pay the balance of the purchase price in a period of seven years or more. Let me tell you here that McDonald's does not offer financing. McDonald's Owners / Operators enjoy the benefits of McDonald's established relationships with many national lenders.
Ongoing Fees
During the franchise period you are entitled to pay the following fees to McDonald's:
Service Fee:
A monthly fee based on McDonald's restaurant sales performance (4.0% of monthly sales service fee).
Rent:
Monthly base rent or percentage rent which is the percentage of monthly sales.
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