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Jason Rager is President of Franchise Analyzer.

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Tuesday
Apr272010

McDonald's Franchise

Hamburgers, chicken, salads

McDonald's brand is in 122 countries around the world. Thirty thousand locations serve 51 million customers each day. More than 70 percent of McDonald's restaurants around the world are owned and operated by independent local businesspeople.

In addition, the company operates Boston Market. It also has a subsidiary, Redbox, which in 2003 started as 18-foot wide automated convenience stores, but as of 2005 has focused on DVD rental machines.

Most standalone McDonald's restaurants offer both counter and drive-through service, with indoor and sometimes outdoor seating. The Drive-Thru, Auto-Mac, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the former two steps are frequently combined. In some countries "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service.

Start-up Costs & Franchises Fees

What is the total cost to open a McDonald's Franchises?

Total Cost: $950,200-$1,800,000 USD
Total Franchise Fees: $45,000 USD
Ongoing Royalty Fees: 12.5% or more
Ongoing Advertising Fees: Not Available
Term of Agreement: 20 years
Franchise Agreement Renewal Fee: $45K

Contact Information for McDonald's

McDonald's
2111 McDonald's Dr.
Oak Brook, IL
60523

Phone Number: (630)623-6196
Fax Number: (630)623-5658

Franchise Homepage:

McDonald's In the Press

No results at this time.

Historical Expansion

In what year did McDonald's begin operations? 1955
When did McDonald's begin selling franchises? 1955

Year United States Canada International Corporate
2005 11632 903 9878 8096
2004 11629 860 9694 8038
2003 11533 843 9740 8065
2002 11276 832 9850 8262
2001 11051 812 9455 6918

Future Expansion

Countries of Interest:

Franchise Financing Information

Cost In House Financing Available? 3rd Party Financing Available?
Franchise Fee No No
Initial Start-up Capital No No
Plant, Property, and Equipment No No
Inventory No No
Accounts Receivable No No
Payroll No No

Training & Support

Support
In the Pressletter, Meetings, Toll free phone number, Grand opening support, Internet referrals, Safety and Security procedures, Field support and site evaluation, Purchasing cooperatives

Franchise Operation Restrictions

82% of all franchise business owners own more than one franchise location.

Absentee ownership of this franchise business is not available to new franchisees. (100% of current franchise business owners are owner/operators)

Qualifications & Business Experience

Business Experience:
  • Industry experience
  • General business experience
  • Sales & marketing experience
  • Franchise Analyzer Professional's Inside Information

    Can you buy this franchise for no money down? Yes
    What key terms in the franchise agreement can be negotiated? Cross-default provisions, arbitration clause, personal guarantee, default cure periods, non-compete agreement, favorable valuations for corporate buyout
    Can you negotiate lower royalties during start-up? Yes
    Can you purchase multiple franchises for a discounted franchise fee? Yes
    Can you receive lower advertising fees? Yes
    Will I know when the franchise break even? Yes
    Will my personal assets including my home be safe in case my franchise business fails? Yes
    Please note: You must download a free copy of Franchise Analyzer Professional to receive these benefits and so much more. Click here to download your FREE copy now.