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McDonald's Franchise Review

About.com Rating 4.5 Star Rating
User Rating 3.5 Star Rating (8 Reviews)

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In 1954, Ray Kroc mortgaged his home and invested his entire life savings to become the exclusive distributor of the Multimixer, a milk-shake maker. When the 52-year-old heard that the McDonald's hamburger stand in California was running eight Multimixers at a time, he paid them a visit and pitched the idea of opening up several restaurants to the owners, Dick and Mac McDonald, hoping to sell eight of his Multimixers to each one. They struck a different deal, and Ray Kroc opened the first McDonald’s restaurant in 1955. In 1965 McDonald's went public and today is the leading global foodservice retailer with more than 30,000 restaurants, located in more than 100 countries.

Background and Benefits

Who doesn’t know the menu by heart and every jingle ever written? The business model works, and with national and international advertising, McDonald’s Corporation manages to serve 27 million Americans everyday. But while owning a McDonald's restaurant is a tremendous opportunity, the company is seeking individuals with significant business experience who have successfully owned or managed multiple business units and have significant financial resources. McDonald's Corporation claims they are about growing business, making money, and having fun, and only the serious entrepreneur need apply.

How Much does a McDonald's Franchise Cost?

It takes a lot of potatoes to make these fries so come prepared. You will need a minimum of $300,000 in non-borrowed, personal resources to be considered for a franchise. Most Owner/Operators enter the System by purchasing an existing restaurant directly from McDonald’s or from a McDonald's Owner/Operator. A small number of new operators choose to purchase a new facility, but that requires an initial down payment of 40% as opposed to 25% for an existing restaurant. Intensive training addresses all aspects of operating a McDonald's restaurant. While McDonald’s does not offer financing, McDonald’s Owner/Operators have access to the company’s established lender relationships with some of the lowest lending rates in the industry.

What We Like

McDonald’s provides hands on training and the materials you need to become a success. With world-class training, world-class service, world-class support, and unsurpassed name recognition, McDonald’s is a sure winner for franchisees seeking a serious “all-in” franchising opportunity with guaranteed community presence and predictable profits. All this and they still serve a shake so thick you need a spoon.

Pros

  • Special Incentive Programs -MinorityFran Participant
  • Recession Proof Market - McDonald's serves more than 27 million individuals daily according to 2007 statistics.
  • World Class Training - McDonald's is recognized as a premier franchising company around the world. Training is required prior to becoming an owner/operator.

Cons

  • Cost - McDonald's does not provide financing or assistance other than the special incentives for minorities.
  • No Absenteeism - McDonald's franchises are open only to individuals who are involved with the day-to-day operations of the restaurants-no absenteeism allowed.

McDonald's Franchise Information

Business Established: 1955
Franchising Since: 1955
Total Investment: $511,000 to $1,000,500

User Reviews

 1 out of 5
Caroline Springs McDonald, Member Whatburger

The worst McDonald I've come across. I live in Caroline Springs but I will never eat there again. I'd rather drive that extra mile to get my McDonald's fix. I've included the image of their ""serious angus"" burger. That's the egg that supposed to be in the burger, it doesn't cover a 1/3 of the burger and is so dry that I won't even attempt to bite it just incase I chip a tooth in the process. The fresh ""angus"" you can see all burnt. I thought they've cleaned up their act, but it doesn't look like it. I am not returning to this McDonald. It's a disgrace to serve such food. I am not even going to go back and show them the burger and exchange it for another because I know it would be exactly the same(My partner ordered the same and both are replicas). I'll put it down as $35 well learnt! I don't even want to give it a star but I have to inorder to press post!

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