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McDonald's Franchise Review

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User Rating 3.5 Star Rating (8 Reviews)

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SAN FRANCISCO - FEBRUARY 09: A sign stands outside of a McDonald's restaurant February 9, 2009 in San Francisco, California. Fast food chain restaurant McDonald's reported a 7.1 percent increase in same store sales for January as people look towards cheaper food alternatives in the weakening economy.
Justin Sullivan/Staff/Getty Images
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

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