What Is the McDonald’s Franchise Cost

Considering the

McDonald’s Franchise Cost

there must be something worthwhile in investing in this franchise since there are over 30,000 locations and  have been in business for over fifty years.  McDonald’s brand is the franchise’s most successful and recognized in the world.  Not surprisingly, before considering anything else the franchise to many people ask: How much does a McDonald’s franchise cost and how I can buy a McDonald’s franchise?  They hear only costs $ 45,000 for a franchise Mighty Mac, an investment that is well within your range of affordability of the franchise.

The McDonald’s franchise fee

As with most things in life, a bit of information is a dangerous thing.  While McDonald’s charges a franchise fee of $45,000 dollars, this is only the initial franchise fee for licensing rights – the initial fee to join the network.  There is much more of a financial commitment and cost involved to buy a McDonald’s franchise after that.

Options owning a McDonald’s franchise

According to McDonald, there are two ways to buy a McDonald’s franchise and get into the system.  The first method and most often used is to buy an existing restaurant, either one directly operated by McDonald’s or an owner / operator of the McDonald’s franchise.

Buy a new McDonald’s franchise

Franchise rights for a new McDonald’s, charges the company licenses its initial franchise fee of $45,000 standard, unless it is for a McDonald’s franchise a gas station or convenience store, the fee Reduced-Flow Series a is $22,500. There is also a reduced franchise fee for McDonald’s satellites located in universities, hospitals, etc. ..

The other McDonald’s Franchise Cost category for a new McDonald’s franchise includes real estate, signage, seating, equipment, decoration, opening working capital, training and inventory. These are laid down in McDonald’s 7 points.

For a satellite of McDonald’s, the range is from $118.375 to $928.400, for a McDonald’s located in a gas station or convenience store, the range is from $ 680.750 to 1.2 million dollars. The standard, the new McDonald’s restaurant watches with a range of $ 1 million to 1.8 million.

So basically a new McDonald’s franchise is $118, 375 to 1.8 million dollars of investments for the selected model.  Plus they are looking for assets of $500,000 as well.

Factors that affect new restaurant costs are: size of the installation of McDonald’s restaurant, part of the country’s pre-opening expenses, inventory, selection of kitchen equipment, signage and the style of decoration and gardening, McDonald’s says. It provides a detailed breakdown of the costs of initial investment into discrete categories, including a working capital component in the disclosure documents FDD McDonald’s franchise that is available on the Web site foundation of the franchise.

Owners / operators must pay forty percent (40%) of the total cost of the liquid assets, personal, and may finance the remainder of the traditional sources of credit.

Investing in a McDonald’s franchise is a sound investment and can be quite rewarding for years to come.  The franchise is more than willing to adjust their menu and prices to suit current needs.  Now that you know the McDonald’s Franchise Cost and that it is a sound investment are you ready to get out your checkbook?

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