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Buying a McDonalds Franchise

If you want to buy a McDonalds franchise, be aware the Corporation accepts limited numbers of new franchisees. When an existing owner sells, the location is often sold to someone already in the system.  Today, McDonalds is the largest of all fast food franchises, with over 20,000 stores open across every continent. For further details, read below.

Even while maintaining its position as the largest of the hamburger franchises, McDonalds has been able to deliver a stream of innovation. This has been a winning combination. Through the end of 2008, the company delivered 55 consecutive months of global same-store sales increases. While the stock market lost a third of its value — its worst performance since theGreat Depression, shares of McDonald’s increased in value nearly 6 percent, making the company one of only two in the Dow Jones industrial average whose share price rose in 2008. (The other was Wal-Mart)

 

Company Profile and Franchise Opportunity Snapshot

Initial Franchise Fee: $45,000
McDonalds franchise golden arches represent one of the world's most familiar fast food brands.Ongoing franchise fees: 12.5%
Advertising Fees: 2.5%
Minimum Cash Required: $150,000 (liquid, non-borrowed funds)
Total Investment to Launch: $500,000 to $1.3 Million
Duration of Franchise Agreement: 15 years
Business Started in: 1955
Franchising Since: 1955
Number of Operating Locations: 20,000+
Number of corporate-owned Locations: approximately 5,000
Franchise Category: Hamburger Franchises

Info about McDonald's largest Latin America franchise going public in 2011:

 

How to Get a McDonalds Franchise

As mentioned above, it is difficult to work your way into the McDonalds network. The corporation wants evidence of your "hands-on" work ethic, your interpersonal skills and financial management abilities.

Use ratings and reports from Best Franchise Reports to find great brands in which one could make franchise investments.
Before investing over $1million in a typical McDonalds location, check the reports and ratings to ensure you are making the most profitable use of your funds.
McDonalds has an extensive unpaid training program that typically takes 1,000 hours or more to complete (that’s as long as a year of part-time work).

You need to agree to hands-on ownership and “full time best efforts”. They do not allow silent investors and they are sticklers for asset verification and how money was accumulated for the investment.

The corporation believes hands-on ownership is a big part of its success formula. Before you invest large amounts of time, cost and energy, be aware of the challenges you will face before you will offered the opportunity to buy a franchise.

For further free McDonald's franchise information and general company news, click here:  McDonalds News

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