Not surprisingly, before considering anything else many would-be franchise owners ask themselves questions like: How much does a McDonalds franchise cost? How can I buy a McDonalds franchise? They hear McDonalds profits and franchise earnings are substantial.
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Buying A New McDonalds Franchise
For franchise licensing rights to a new McDonalds, the company charges its standard $45,000 initial franchise fee. The second cost category associated with establishing a new McDonalds franchise is "Equipment and Pre-Opening Costs." According to McDonalds, the total on these costs range from $975,000 to $1,843,000. So, basically a McDonalds franchise is a $1 million to $1.8 million initial investment.
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Buying An Existing Restaurant - McDonalds Franchises For Sale
According to McDonalds Corporation "The purchase price of an existing restaurant varies and is dependent upon a number of factors including sales volume, profitablity, occupancy costs, reinvestment or improvement needs, competition and location."
A typical McDonalds restaurant that's been operating for at least one year generates over $2,000,000 in annual sales, with profits in the low six-figure range. Based on my experience, I estimate the sales price of an existing McDonalds franchise (or company-owned restaurants sold as turnkey franchises) to be in the $2 million to $6 million range, plus or minus, depending on their sales, profit margins, etc.
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The McDonalds FDD - a 375-page Treasure Trove of Information
The 375-page McDonalds FDD is a treasure trove of information about the McDonalds franchise program, relationship, the McDonalds investment, the McDonalds franchise training program, cost of sales, gross profit and operating profit of McDonalds franchises, etc. The McDonalds FDD also contains 3 years of audited financial statements on the franchise entity offering McDonalds franchises, a list of the names, addresses and phone numbers of McDonalds franchise owners and the 15-page McDonalds franchise agreement - a work of art that makes one wonder why other companies require contracts running over a hundred pages. To obtain the McDonalds FDD click on the link below.
copyright 2009, Kevin B. Murphy, all rights reserved
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