Requirements to Open a McDonald’s Franchise

McDonalds Franchise Costs

What are the requirements to open a McDonald's franchise? If you qualify to open a McDonald's
franchise and are willing to invest your time and money it can be a very financially rewarding and life-
changing experience.

Facts about the McDonald's Franchise System

McDonald's has been a franchising company since 1955 and has relied on its franchisees to play a
major role in the system's success. McDonald's remains committed to franchising as a predominant
way of doing business. Today, the McDonald's franchise is the leading global foodservice retailer with
more than 30,000 restaurants, located in more than 100 countries.

If you are considering buying a McDonald's franchise you will most likely buy an existing franchise
restaurant. Most franchisees enter the system by purchasing an existing restaurant, either from
McDonald's or from a McDonald's franchisee. A very small number of new operators enter the system
by purchasing a new restaurant.

Financial Requirements and Start-Up Costs to Open a McDonald's

An initial down payment is required when you purchase a new restaurant (40% of the total cost) or an
existing restaurant (25% of the total cost). The down payment must come from non-borrowed
personal resources, which include cash on hand; securities, bonds, and debentures; vested profit
sharing (net of taxes); and business or real estate equity, exclusive of your personal residence.

Since the total cost varies from restaurant to restaurant, the minimum amount for a down payment
will vary. Generally, you need a minimum of $300,000 of non-borrowed personal resources to be
considered to open a McDonald's franchise. Individuals with additional funds may be better prepared
for additional or multi-restaurant opportunities which McDOnald's encourages.

Other Requirements to Open a McDonald's

 Significant business experience - Individuals who have demonstrated successful ownership

or management of multiple business units or have managed multiple departments.
 Rapid growth - Individuals who possess the capability to grow rapidly with McDonald's.
 Business plan - The ability to develop and execute a business plan.
 Manage finances well - Ability to manage finances including a thorough understanding of
business financial statements.
 Good management skills - Commitment to personally manage the day-to-day operations of
the restaurant business.
 Training - Willingness to complete a comprehensive world class training program and become
proficient in all aspects of operating a McDonald's restaurant business.
 Exceptional customer experience - The capability to effectively manage an organization
that recruits, trains, and motivates restaurant employees who deliver an exceptional customer
experience.
 Good credit history - An acceptable credit history

Ongoing Fees to McDonald's

 During the term of the franchise, you pay McDonald’s the following fees:

 Service fee- A monthly fee based upon the restaurant’s sales performance (currently a
service fee of 4.0% of monthly sales).
 Rent - A monthly base rent or percentage rent that is a percentage of monthly sales.
McDonald's usually owns the property and also acts as the landlord.

McDonald's Vision Statement

We have provided below details of the content of the McDonald Vision Statement, one of the most successful companies in the
World.

McDonald's Vision Statement

We hope that the McDonald Vision Statement together with our definitions, hints and tips will provide you with inspiration to
develop your own successful explanatory paragraph which will prove to be suitable for both your associates, customers and
employees.

McDonalds Mission Statement

Information from Examples Help

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and format of letters are detailed in the free, online Letter Writing presentation. This also includes sections on formal or
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 McDonald's Vision Statement

 Helpful hints and tips on writing Mission
Statements
 Easy techniques - Samples, Formats, Contents
and Example
 Content and Format of McDonalds
 The content for McDonald
 Free hints , tips, samples and information from
'Examples Help'
 One of the most successful companies in the world
 McDonald Vision Statement:
"McDonald's vision is to be the world's best quick
service restaurant experience. Being the best
means providing outstanding quality, service,
cleanliness, and value, so that we make every
customer in every restaurant smile."

http://www.scribd.com/doc/14142906/feasibility-report-on-restaurant