As of 2023, the total startup costs for a McDonald's franchise range from $1 million to $2.2 million. Franchisees must have at least $500,000 in liquid assets to begin the application process for a McDonald's restaurant. There is also a $45,000 franchise fee that must be paid.
The average annual income of a McDonald's franchise owner is $150,000, though this figure can change depending on the location and level of popularity. Furthermore, a McDonald's restaurant typically makes $2.7 million in annual sales. You must also subtract the costs related to payroll, food, supplies, and any other expenses that the corporation mandates the franchise owner pay.
How to own a McDonald’s franchise?
First, you must go through a drawn-out application process where you are required to provide details about your finances, net worth, location, and any prior arrests you may have had.
The McDonald's franchise application is only the beginning of the procedure; there will probably be more steps where additional pertinent information may be requested. Before you can own a franchise, though, you must complete a training course. It is necessary for anyone who has a sincere interest in a franchise and lasts for anywhere between 12 and 18 months.
The following are included in the McDonald's franchise training program:
Being capable of putting at least $500,000 of your liquid assets into a McDonald's.
You must be available for training on various days of the week and at various times of the day.
Acquiring the qualities of a great franchisee and being ready to change quickly.
Depending on the location of the restaurant, relocate if necessary.
Give the restaurant business and your leadership position your undivided attention and time.
Is it worthwhile to buy a McDonald's franchise?
Owning a McDonald's franchise might be worthwhile given that annual sales can reach well over $2 million. Unfortunately, there are a lot of other expenses involved, such as paying real estate taxes, landscaping expenses, and unforeseen upgrades.
The franchise owner is also in charge of remodeling the kitchen, adding new furniture, and decorating it. The cost of the upgrades increases with the age of the McDonald's. Although upgrades can easily cost up to $1 million, which reduces profits, they could be adjusted.
Who can purchase a McDonald’s franchise?
Unfortunately, due to the high costs involved in owning a franchise, not just anyone can purchase a franchise with McDonald's. At least $500,000 in liquid assets must be on hand, though it is preferable to have liquid assets closer to $700,000.
Additionally, you must be able to come up with 40% of the $1 million to $2.2 million in startup costs on your own; however, you can finance the other 60%.
Who chooses the location of a McDonald’s franchise?
McDonald’s chooses the preferred location for the franchise. You cannot choose the location you would run, though a suggestion is possible. The topic is not even brought up until the intensive training program is complete.
Furthermore, a nearby location might not be accessible by the time you finish the training, so flexibility in terms of location is preferred. You cannot select the McDonald's location you want to run, so if you are constrained to a particular area, you are unlikely to be granted a franchise.
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