Buying a McDonalds Franchise; Getting the McDonalds FDD Franchise Disclosure Document
It's not simply a matter of contacting McDonalds and submitting an application. McDonalds is one of the most difficult franchises to obtain and having sufficient liquid resources is just one part of a much larger picture. Preparation and planning are key.
Buying A McDonalds FranchiseBefore contacting McDonalds about applying for a franchise, it's absolutely critical to obtain the 386-page McDonalds FDD, which is a comprehensive description of all aspects of the McDonalds franchise program, investment requirements for the 3 different business models currently offered, franchise training program, sales and expense details for current franchise owners, miscellaneous requirements and franchise info, etc. This is absolutely the recommended starting point.
With what you learn from the McDonalds FDD, you will be able to correspond with McDonalds from a position of knowledge about its franchise program - definitely a plus. And you can also use the FDD info to strategically complete your application.
Getting the McDonalds FDDThe extremely difficult-to-obtain FDD document as published by McDonalds is available on the Franchise Foundations website for $180 - a price that is a lot less than anywhere else. Click on the link below. And Franchise Foundations is the only third party provider that has the most recently issued McDonalds FDD (issued May 1, 2011 and amended January 15, 2012).
The McDonalds FDD - a 386-page Treasure Trove of InformationThe 386-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. It contains 23 chapters or items of information, plus many exhibits. Unlike many other franchise companies, McDonalds steps up to the plate and discloses what its franchise owners are doing, financially. The McDonalds FDD also contains 3 years of audited financial statements of the franchise entity offering McDonalds franchises, a list of the names, addresses and phone numbers of McDonalds franchise owners and the actual 15-page McDonalds franchise agreement. This is a work of art that makes anyone wonder why other companies require contracts running over a hundred pages, loaded with legalese, boilerplate that bites and fine-print that's not fine at all.
How Much Does A McDonalds Franchise Cost?Most people hear a McDonalds costs $45,000, a figure well within most budgets. Unfortunately, that's just the entry, franchise fee (which is significantly less for McDonalds Satellite and STO locations). The initial investment cost for a traditional McDonalds is $1 million to $1.9 million per their FDD. For McDonalds Satellite locations, the cost drops to $173,000 to $627,000. Full details, including an itemized investment table for each of the 3 different franchise models (the third are McDonalds STO locations), is found in Item 7 of the McDonalds FDD.
Next Step - the McDonalds Franchise Application ProcessVery important tip: don't use the check-the-box, fill in a couple blanks, 60-second online application on the McDonalds website. Your chances of reaching the critical first interview are much greater if you submit their long-form application. No longer available on the McDonalds website, Franchise Foundations also has the long-form McDonalds application, which is still being accepted.
Editing and Fine-Tuning Your McDonalds ApplicationKevin Murphy, known in the industry as "Mr. Franchise," offers help in the application submission process, reviewing and fine-tuning your franchise application based on his 32-years of experience knowing what McDonalds looks for and the types of answers and information they like to see.
This has allowed a number of clients to get to the critical interview stage - a point over 95% of McDonalds applicants never reach. As the saying goes, you only get one chance to make a good, first impression.
- Copyright 2012, Kevin B. Murphy, all rights reserved