In the United States of America, it would cost an individual around $1,314,500 and $2,306,500 to open up a McDonald’s franchise. It seems to be quite costly to open a McDonald’s restaurant as the company has got a reputation in the market and therefore the location and the building structure and everything else that comes with it needs to be perfect so that customers are attracted towards the outlet.
However, there are other requirements that an owner of a McDonald’s outlet would have to become eligible for. They need to contact the higher authorities before opting for a franchise of the company. There might be some kind of a minimum liquid asset that the owner should have. McDonald’s franchise is said to be one of the costliest options in the market today. The fees and costs may keep rising in the future.
Procedure For Opening A New McDonald’s Franchise
There may be a certain process that the new owner might have to go through depending on the country and region where he wants to open up the new outlet of McDonald’s. In most cases, McDonald’s easily approves the owner who is wishing to open up a new franchise because the company may have plans to open up a new outlet in that area. The owner of the new franchise must have a certain amount of experience in owning and managing and also he should be able to operate basic business functions.
The interested owner/owners who wish to open a new franchise should pay a franchise fee of around $45,000. The new owners should have liquid assets of around $500,000. The new owners should shell out the above-mentioned amount of money to have the franchise up and running at the same time. The cost could vary depending on various things like the country, region, store type, and as well as the size of the restaurant.
These are some of the basic processing that the new owners would have to go through. New owners should go through the terms and conditions thoroughly regarding the finances and all other such kinds of crucial things so that they do not have to face any kind of issues in the future.
Miscellaneous Costs
There are certain costs that the new owners should be ready to incur because those are some necessary costs that they have to undertake. Some of the costs that could vary are in the departments of
The inventoryKitchen utensils and pieces of equipmentExpenses regarding the constructionInterior decoration and exterior landscapingHiring and training
It has been said that the new owners should be able to pay around 40% of the total cost of the building of the restaurant upfront while the remaining costs can be incurred through various financial services that the brand (McDonald’s) has established its relationship with. However, apart from that, the new franchise owners would have to pay around a 4% monthly fee to McDonald’s which is based on the sales performance of the franchise.
There are loans that the new owners can look for either in cash or digital cash. If someone wants to open up a new outlet of McDonald’s then they may take up a loan and start its business and then slowly repay everything. As of now, there are various options that new owners can go through in case they are looking to open a new outlet at McDonald’s.
Conclusion
In the end, it is all about making huge profits out of these franchises. When it comes to opening up a franchise of McDonald’s then it would have to come with a huge cost because of the reputation that McDonald’s has built since its foundation. It also may not be easy to get permission from McDonald’s to open up a new franchise because there may be certain eligibility criteria that may not be fulfilled by the new owners. However, there are other requirements that an owner of a McDonald’s outlet would have to become eligible for. They need to contact the higher authorities before opting for a franchise of the company. There might be some kind of a minimum liquid asset that the owner should have.
