business






 

Question by  kwiklip (29)

How much does a McDonald's franchise cost?

I am thinking of opening a franchise, what could be better than McDonald's? I just don't know if I have the funds available quite yet.

 
+7

Answer by  catboxxy (182)

This varies from location to location, but if your investment capacity is less than a million dollars, I would consider investing elsewhere. The range of investment, depending on location, is between 900,000 and 1,800,000. The initial franchise fee is 45,000, with a 45,000 annual fee to renew the franchise license.

 
+6

Answer by  patti (29325)

The initial franchise fee is $45,000 and is renewable after the 20-year term. The royalty fee is 12.5%. The total investment required is between $1.2 and $1.7 million. Don't worry about confusion over whether the funds are available. McDonald's Corp will do a thorough investigation of your assets and make sure you have the liquidity to sustain a franchise.

 
+6

Answer by  patti (29325)

The initial fee is $45,000 plus the cost of the restaurant. A minimum of $300,000 "non-borrowed" funds is required. There are rent and monthly franchise fees based on the unit's performance. The franchisee is expected to secure financing beyond the on-hand funds that are required.

 
+6

Answer by  Jeremy83 (28)

The Franchise fee for a McDonalds is not that expensive; it is only $45,000 and is renewed every 20 years. However, McDonalds will require that you have 25% of the total cost available in cash. This 25% is approximately $250,000.

 
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