How much does it cost to own a McDonalds franchise in India?

Answer 1

app. $1 million to $6 million . . . depending

Not quite, but closeFigure on needing about $1 to $6 million, plus or minus. Here's the deal:

McDonalds is extremely picky about who they allow to buy franchises--they absolutely do not want a franchisee to fail, only partly because it makes the company look bad if they bring someone in who fails. One of the things you MUST bring to the table is $300,000 of your own money.

The franchise itself costs $45,000. This entry fee gives you permission to build (or acquire) a restaurant, write McDonalds on the side of it and start selling McDonalds food.

The restaurant will cost you anywhere from $1 to $2 million. They would prefer you open several of them. They normally won't sell you a franchise in a town that already has McDonalds restaurants, although I'm sure there are exceptions--can you imagine owning all the McDonalds in Los Angeles?

After that there are operating costs--payroll, utilities, taxes, food, etc...

Here's a 2009 update from Franchise Foundations: Per McDonalds 2009 FDD (a copy of this 375-page treasure trove of McDonalds information can be obtained on the Franchise Foundations website), for a "new McDonalds franchise" the investment is $995,900 to $1,842,700. So, basically a new McDonalds franchise is a $1 million to $1.85 million initial investment.

But the most frequently used method of buying a McDonalds franchise for sale - purchasing an existing restaurant from a current McDonalds franchise owner or one that's company-owned by McDonalds and sold as a "turnkey franchise."

Unfortunately, details about how much this type of McDonalds franchise costs are not specified, other than the following statement by McDonalds: "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."

Here, you're looking at a likely $2 million to $6 million range, plus or minus, depending on their sales, profit margins, etc. of the particular location up for sale.

The 375-page McDonalds FDD also includes detailed information about financial results for McDonalds restaurants that hit three different sales levels - $2 million, $2.2 million and $2.4 million, showing cost of sales, gross profit and operating profit for a McDonalds restaurant at each level. Operating profits are in the mid six figures for each sales level. This is contained in Item 19 of the FDD.

The McDonalds FDD has a list of McDonalds franchise owners - their names, addresses and phone numbers. Also attached as an exhibit to the FDD is the actual 15-page McDonalds franchise agreement. The McDonalds franchise contract is a work of art, significantly smaller (and fairer) than most other franchise agreements used in the franchise industry. Makes one wonder why other franchise companies such as In&Out Burger, Elevation Burger demand 50-page or 100-page franchise agreements, when McDonalds only requires 15-pages, while those companies are much smaller and cheaper to own has also enjoyed significant success.

You can compare the differences in the franchise agreement by visiting the Franchise portal attached under related links below, and requesting more information from them to view an actual sample, so you can clearly see what I mean, and you might as well spot a potential Franchise opportunity that's right for you especially if you're on a lower budget.

Answer 2

There are two different types of McDonalds franchises, each with its own cost. For a "new" McDonalds the cost is $1 million to $2 million. For an existing McDonalds restaurant that's for sale either by McDonalds Corp. or by a McDonalds franchise owner, the cost will depend on a variety of factors.

McDonalds corporate is increasingly getting out of operating McDonalds restaurants, selling them off as what are called turnkey franchises. In addition, a sizeable number of McDonalds franchise owners are attempting to sell their franchises for a variety of reasons.

Answer 3

To buy a McDonalds franchise it costs a minimum of $2,500,000. So if you actually want to buy the company you would need much more than that.

Answer 4

Depends on the size, location, and sales of the store. Anywhere from $300,000 to +$5 Million.

Answer 5

5cr & above plus 2500sqft. Space rented or owned

Answer 6

it will take over 3million dollars

Answer 7

$45,000.00