Franchising is the ideal business if you want to profit using an established company name, proven business techniques, and with no marketing effort. For that, a McDonald’s franchise is one of the best choices. It is already an established name, has proven business techniques, and will market for you. All you have to do is own a McDonald’s franchise and manage it using the parent company’s business techniques.
Here are the things you should have before you can own a McDonald’s:
- Successful business in the past. McDonald’s require their franchisees to have business knowledge that is why they only accept those who have experience in running a business. Experience in the food industry will be helpful but is not really a requirement.
- Desire. The McDonalds Corporation will like it more that their franchisees are enthusiastic and ambitious to start a new business.
- Full-time effort. Aside from the high capital, you are also expected to fully manage the McDonald’s franchise. If you’re thinking to fund this business, then you better forget about McDonald’s franchise. You will be locked in a 20-year agreement to ensure that you’ll be serious about running a business under the fast food brand.
- Money. More than the 20-year agreement, the money you need to start a McDonald’s franchise is something you should be serious about. All in all, you’ll need $500,000 to $1.6 million to start a McDonald’s franchise business. Why that much? First, you’ll have to pay $45,000 for the franchise fee. You’ll pay another franchise fee after the 20-year agreement has ended. There will also be a 12.5% royalty fee. $100,000 to as much as $150,000 will be needed for the equipment, accounts receivables, payroll, and inventory. You’ll need money for the physical store, too.
Once you have met these requirements, you are ready to start owning a McDonald’s franchise. Start it by sending an application.
Send an application either through mail or using the McDonald’s website. Questions about your personal information, business experience, and education will be there. Be ready to reveal your financial assets and liabilities, too. All the information you’ll give will be verified so be honest about what you’ll put on there.
Once your application is approved, you’ll start training for the McDonald’s way of doing business. Your staff will be trained also for a full one week. Ongoing training will also be available for a year or two once you are already running the restaurant. After the training, you can now have access to their resources and tools. Continued support will be expected so that McDonald’s can make sure you’ll be on your way to success. You’ll have 24-hour phone support, field operations support, cooperative purchasing, and newsletters.
For now, McDonald’s is operating in about 118 countries worldwide. That means it’s a worldwide-recognized brand. Set up a McDonald’s anywhere and it will be a hit. It’s considered one of the most successful fast food businesses to date, too. It’s also one of the top franchises in the United States.
Perhaps the only downside of owning a McDonald’s franchise is the high start-up cost. Well, the money you’ll need may not be that tempting but at least, it’s reasonable.