Facts About A McDonald’s Franchise
McDonald’s franchise has been in existence since 1955 and the franchisees themselves have played a major role in the success of the company. Today, there are roughly over 30,000 restaurants spanning the globe in over 100 countries.
If you were to consider buying a McDonald’s franchise, there are 2 scenarios to choose from. You can either purchase an existing restaurant from the company or another franchisee (which is the most common practice) or you can purchase a new restaurant that is built from the ground up. In either case, you must have a minimum of $300,000 down payment that can NOT be borrowed. You must have it and that’s just the down payment.
Other factors in opening a McDonald’s franchise include having significant business experience, good management skills, the ability to manage finances well, you must be able to execute and deliver on a business plan, you have to maintain exceptional customer service and you have to have a good credit history. Without these things, you might be looking at a different franchise altogether.
Most experts will agree that if you can break even in the first 7-10 years, you are running a successful McDonald’s franchise. Part of the ongoing expenses include royalties of roughly 4% of gross monthly sales and of course rent for the building. What you might not know is that the McDonald’s corporation usually owns the land and you pay rent to them. In fact, McDonald’s corporation is one of the largest holders of real estate in the world and one could argue that McDonald’s is not in the business of burgers, but instead in the business of real estate.
Bottom line is that owing a McDonald’s franchise is not for the timid. You have to have considerable net worth, a good track record and still get approval by the company. Not all franchises are this way and if you don’t qualify for a McDonald’s franchise, then there are plenty of other viable options for you.


