How Much Does Mcdonald’s Franchise Cost? (full Guide)

However, McDonald’s has been accused of mistreating their workers and paying them substandard wages.

McDonald’s is a fast food restaurant with over 30,000 restaurants throughout the world. If you are considering becoming a franchisee of the McDonald’s restaurant, here are some things to consider!

How Much Does McDonald’s Franchise Cost In 2022?

The costs to fully open a McDonald’s franchise is anywhere from $1,000,000 to $2,200,000. This includes the franchise fee of $45,000. Additionally, to open a McDonald’s restaurant, franchisees need to have at least $500,000 in liquid assets.

There are many other factors you need to take into consideration when looking into purchasing a McDonald’s franchise which we will cover below.

How Much Does a McDonald’s Franchise Owner Make a Year?

McDonald’s franchises are operated by independent business owners and they earn around $150,000 per year in profit, the exact amount depends upon the location and popularity of the franchise.

And the average daily sales at a McDonald’s is only 2 dollars.

Franchise owners must deduct all the costs that the franchise owner pays to the franchise. These are known as variable costs. There are also fixed costs, such as the cost of the franchise itself.

The franchisees are no longer able to earn any money, and lose around $150,000 per year.

Is a McDonald’s Franchise Worth It?

The idea of opening a McDonald’s franchise isn’t the most profitable business of all. However, it’s better than selling marijuana or prostitution.

While these are costs, they are much less than the potential profits of an investment as a real estate rental property.

The franchise owner is responsible for remodeling and decorating the restaurant including the kitchen and the dining area. The older the McDonald’s is the more expensive the remodeling costs are.

It’s hard to say how much a team owner makes, but you can get paid over $150,000 if the team has a large following.

Can Anyone Purchase a Franchise With McDonald’s?

Not only does McDonald’s charge a franchise fee, but they also charge annual fees throughout the duration of the franchise agreement.

To put it simply, you will need to have a minimum of $500,000 in liquid assets available. However, you can have as much as $700,000 in liquid assets available.

The franchise fee is paid to a person who is offering the franchise.

With the franchise fee and the amount of money you put in, you will need to come up with at least 40% of the cost, however, you can finance the other 60%.

What’s the First Step to Owning a McDonald’s Franchise?

Well, there is an extensive application process involved where you have to disclose your financial information, net-worth, geographical and any criminal history.

McDonald’s is just the first in a series of follow ups. We’ll likely see more where the company must provide additional information.

The franchise owner should have a genuine interest in a franchise in order to make sure the program runs smoothly. After the training of 12 months to 18 months, you will become a franchise owner.

What Are the Main Goals of the McDonald’s Franchise Training Program?

A Franchise Consultancy Service will assist you in understanding franchise requirements, including franchise fees and franchisee start-up costs, to ensure you are making sound choices for your business.

Can You Own More Than One McDonald’s Franchise?

Franchise owners generally have a lot more than one McDonald’s restaurant they operate, and generally require much more cash in their business in terms of the amount of money they need to invest.

Also, some business owners are able to open two stores at once. If a business owner has operated more than one store at the same time, the business owner is more likely to succeed at two outlets than they are at one. For example, if a business owner owned one store for two years — or had two stores for one year — they may be considered capable of operating two stores at the same time.

There are many reasons to learn how to run multiple locations. You may want to start a business from home, or you may not want to have to be in the office. In this case, you may be better off working from home, as you can save on transportation costs.

Is Owning a McDonald’s Franchise With a Partner Allowed?

Typically, the McDonald’s franchise system does not allow for someone to purchase a franchise with a partner. It is at the sole discretion of the Franchising Officer.

The partnership deal is not standard, however, cases can be negotiated in order to have a successful partnership.

Can You Choose Which McDonald’s Restaurant You Want?

Yes, the franchise is not in the United States, but the training is very intensive, and the franchise’s location is not something that you choose.

Further, a location near you may no longer be available by the time you complete the training so please be flexible in geographical location!

McDonald’s does not allow you to select the location that you want to franchise. If you’re limited to a specific area, and even a specific building, you’re probably not going to get the franchise.

Can You Apply to Run A Brand New McDonald’s Location?

I got the sense that the franchisee had some experience running a grocery store before and was able to get a deal.
McDonald’s is a business that will take chances on people that don’t have a proven track record.

With the new locations, there is a very high chance that the people that have worked for the new chain will lose their jobs and the new locations will be staffed by non-professionals that will not be trained properly.

Owning a McDonald’s Franchise Also Means Community Involvement

People who are aspiring franchise owners should also get to know the community that they are in.

Franchisees should also build a strong relationship with the communities they serve. They should create opportunities and encourage volunteerism within the communities to build and strengthen relationships. It is recommended that franchisees create a community relations team to support and engage in community building.

As a result of Mr. Kroc’s desire to give back, the Ronald McDonald House came to fruition followed by the Archways to Opportunity program that is for the purpose of raising awareness of childhood and life-threatening illnesses.

What Traits Does McDonald’s Look for in a Franchisee?

McDonald’s looks for people who demonstrate a set of qualities that it values, in order to ensure that you’ll have a successful franchise operation.

If you want to learn more, you can also read our posts on Hungry Jacks vs. McDonald’s, Hungry Jacks competitive advantages, and Hungry Jack’s first store.

Conclusion

Getting a franchise is expensive, anywhere from $1 million to $2.2 million depending on the market you want to target. Most of the money is used to pay for your initial franchise fees, legal fees, and franchisee start up costs.

McDonald’s restaurant franchise owners can operate a franchise at the same or higher profits as other fast food restaurants, but at increased costs.

The above factors do not come in the calculation of your franchise fee. For the purpose of this calculator, location is only a factor in determining your profit.

While the earnings for fast food franchise owners can be high, the amount of money you need to invest in a franchise may make it a difficult decision.