McDonald’s, one of the famed fast food eateries is widely known to all. Their dine-in and drive-thru branches are celebrated throughout the world. Furthermore McDonald’s is one of the top international franchising restaurants. It has been a great vision for countless entrepreneurs to obtain McDonald’s franchise. How much does a McDonald’s franchise cost?
Here are some facts on McDonald’s Franchise Cost and Expenses:
Commencing Franchise Fee:
Initially you need to pay an amount of approximately $45,000.00 to the franchiser. Please note that this is not an extra payment. The commencing fee is part of the total investment. However the total fee may differ between the restaurants. Consequently the deposit may also vary.
In order to join the franchising program, minimum requirement is necessary. A franchisee should have at least $500,000 of liquid assets. That is to say $500,000 of non-borrowed personal assets. Only this will give you the opportunity to join hands with them in business.
Apart from that, the franchisee ought to pay other expenses as well. For example, the rent and service fee. Firstly the rent is a percentage of the month-long sales. Whereas the service fee depends on the outcome of the restaurant. At present they are charging a fee of 4.0% of sales on a monthly basis.
Overall Investment Cost:
On the whole, McDonald’s franchise price is roughly around $1,008,000 to $2,214,080. This is the cost to start a customary McDonald’s franchise. Visit their website to learn more about franchising with them.
McDonald’s is certainly popular for its brand. However the cost to attain its franchise is massive. And this would be very difficult for up-and-coming entrepreneurs. There are many other reasonable franchise opportunities. For example, Uncle Fluffy and Paisano’s franchise. Uncle Fluffy franchise fee is around $30,000 to $50,000. On the other hand Paisano’s franchise is about USD $40,000.