To open a McDonald’s restaurant, franchisees need $500,000 in liquid assets and to pay a $45,000 franchise fee. The total investment ranges from $1.3 to $2.4 million. McDonald’s requires franchises to have at least $500,000 in liquid assets. Franchisees must also pay 4% royalties on gross sales and 4%+ brand fund fee. The potential rewards can be great with careful planning and management.
Average Earnings and Expenses
- The average yearly sales at a McDonald’s restaurant is $2.7 million.
- Food and paper costs are the largest expenses, including product and packaging costs.
- A McDonald’s franchise owner makes around $150,000 per year on average.
Startup Costs Breakdown
- Initial franchise fee: $45,000
- Total investment: $1.3-$2.4 million
- Liquid assets required: $500,000
- Royalty fee: 4% of gross sales
McDonald’s franchisees earn an average of $150,000 per the year, with variations based on location and popularity. Annual sales for a McDonald’s is $2.7M. Startup cost details include a minimum liquid capital of $500,000.
Startup costs are relatively low as Chick-fil-A purchases real estate and equipment, leasing them with monthly payments.
- Initial investment: $1 million to $2.2 million
- Franchise fee: $45,000
- Ongoing monthly service fee: 4% of gross sales
Ray Kroc emphasized the importance of timing and action for success in a McDonald’s franchise.
McDonald’s franchise ownership offers lucrative earning potential with proper understanding and management.