How much does Mc Donald's Franchise Cost and what do I need to do?

• I want to know how much does it cost to open up McDonald's and what are the stuffs I need to do ???

• Answer:

  Most Owner/Operators enter the System by purchasing an existing restaurant, either from McDonald’s or from a McDonald's Owner/Operator. A small number of new operators enter the System by purchasing a new restaurant. The financial requirements vary depending on the method of acquisition. Financial Requirements/Down Payment An initial down payment is required when you purchase a new restaurant (40% of the total cost) or an existing restaurant (25% of the total cost). The down payment must come from non-borrowed personal resources, which include cash on hand; securities, bonds, and debentures; vested profit sharing (net of taxes); and business or real estate equity, exclusive of your personal residence. Since the total cost varies from restaurant to restaurant, the minimum amount for a down payment will vary. Generally, we require a minimum of $200,000 of non-borrowed personal resources to consider you for a franchise. Individuals with additional funds may be better prepared for additional or multi-restaurant opportunities. Financing We require that the buyer pay a minimum of 25% cash as a down payment toward the purchase of a restaurant. The remaining balance of the purchase price may be financed for a period of no more than seven years. While McDonald’s does not offer financing, McDonald’s Owner/Operators enjoy the benefits of our established relationships with many national lending institutions. We believe our Owner/Operators enjoy the lowest lending rates in the industry. Ongoing Fees During the term of the franchise, you pay McDonald’s the following fees: Service fee: a monthly fee based upon the restaurant’s sales performance (currently a service fee of 4.0% of monthly sales). Rent: a monthly base rent or percentage rent that is a percentage of monthly sales. I hope this helps.