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McDonald's Franchise Review

Overview

The Golden Arches are also extremely lucrative. This is the well-known company that’s been franchising since 1955 and began when Ray Kroc traveled to California to see for himself how eight milkshake mixers sped up the customer service at a local restaurant.

Dick and Mac McDonald were the brothers who listened to Kroc’s advice and opened up the first in the chain of restaurants that has become synonymous with fast food across the globe.

Financing

McDonald’s franchise + review finances are one of the most important aspects that can help you decide if you want to get involved with this franchise. Before you read the actual numbers about initial investments and such, it’s a good idea to remember that McDonald’s has relationships with third-party sources that help with financing.

That said, the initial investment is between $1,003,000 - $2,228,000 dollars. The minimum amount of liquid capital that a person needs to have to become a McDonald’s franchisee is $500,000 dollars.

The ongoing fees include the biggest one first which is the initial franchise fee of $45,000 dollars. If you’re thinking about a McDonald’s franchise, you need to keep in mind that this fee is a one-time cost that is usually due when you sign the contract. It could be a flat number or based on a territory size or another factor.

There is also an ongoing royalty fee of 4% with your McDonald’s franchise as well as an ad royalty fee of 4 percent. The Franchise 500® Rank is 6/500 for 2016 that represents a bounce back from a low point in 2014 when the ranking slipped to 16/500.

Getting Started

The on-site training ranges from 6 to 24 months while the training at the headquarters is varied. McDonald’s franchise + review research also points to a variety of ongoing support vehicles including a newsletter and the Internet as well as field operations and a toll-free line.

Marketing support for those looking to become a franchisee includes regional media, co-op advertising and national media options. Currently McDonald’s has 6137 company owned businesses. Franchises outside the United States total 17,389 in addition to the 12,978 business inside America’s national borders.

Recent reports from reputable news organizations like Reuters say that McDonald’s is planning a series of self-serve kiosks as well as online ordering capabilities for 500 of its American restaurants. Restaurants in New York, Southern California and Florida will be the first to adopt the new style.

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