Franchise is now one of the most popular ways to do business. Giant companies, mainly catering or with retail sales in this way, are spreading to every corner of the world. In today's article, we will focus on one of the absolute leaders, McDonald's. Consider this article as a mini-guide on how to become one of the franchisees, what are the advantages and disadvantages, and what are the chances of getting rich, or at least financially free.
Is a restaurant franchise a good business?
This is probably the first question that comes to your mind, quite legitimately. Admittedly, franchising in food service is extremely popular, but depending on the region, you may encounter the phenomenon of over-saturation. Simply put, some businesses/restaurants can be found on every corner. An absolute game changer is the situation where you intend to open your business in a place where the premises will be the first in the area or having a useful location, such as the highway.
Mcdonald’s
Let's not kid ourselves, Mcdonald's is a powerhouse among fast food restaurants. Being so many years on the market, they have huge layers of experience, a solid business model. Besides, they have one vision for the future, which is easy to get used to after the training and support you get from the main department.
Ownership of McDonald's, is it a good idea?
Mcdonald's was founded in the 1950s in the United States. In parts of the world affected by civilization, it is downright impossible that when throwing the phrase “fast food” or "McDonald's's” someone will make big eyes and have no idea what we are talking about. It is a certain symbol of our times, known to everyone. Virtually every city can boast its McDonald's. If you find a rarity in the form of a place where the average distance to these restaurants is relatively far, it is worth trying your hand at a McDonald's's franchise.
How to become a McDonald's franchisee?
McDonald's, in terms of becoming a franchisee, gives us a full list of criteria to meet. Also, you will try to draw an average of all the national requirements.
First, the own contribution of franchisees. The purchase of equipment for the restaurant alone ranges between 3,000,000 and 5,000,000 USD in addition to the funds you must have to start with is about $2,000,000. That's not all. Mcdonald's is a globally known brand, but its roots are in the United States. Therefore, you have to pay an initial license fee of up to $50,000. Just the procurement of products, cleaning products or branded packaging is a cost of $50,000. Of course, depending on the latitude you are in, you have to pay all the fees associated with starting a business.
The prices are huge, on top of which you have some spending restrictions. If you don't have all of our own contribution, they can be financed on a 60%-40% basis. What does this mean?
60% of the total amount can come from a bank loan, but there is a small catch. You enter the bank for a loan in our own name, based on the franchise offer created by McDonald's. The second part, which is 40%, is the absolute minimum you must have to start.
Besides financial matters, is there anything else?
McDonald's franchise cost might scare you, with all of those figures, you understand. But McDonald's is undoubtedly a brand with traditions built up over the years. Contribution alone is not enough, McDonald wishes specific qualities from its potential franchisees. First, conviction and passion for the brand, skills in managing a team, professionalism, knowledge of all issues in the financial field, entrepreneurial skills, openness to changes in the needs of restaurant guests and preparation for possible ups and downs. If you are that kind of person, this is halfway to success and becoming a regional McDonald's owner!
How is it with real estate? Or maybe McDonald's build?
The franchisor does not expect the franchisee to have its own property in this regard. This is fully handled by the McDonald's's development department, which will find one. However, if you are in possession of a building that you are ready to put under the used chain, it must, however, be checked for the given criteria by the company's experts. So to sum up, you’ve got two options. Open McDonald's on your accepted estate, or let McDonald's's build for you.
Location
As mentioned above, the franchisee first specifies his preferences, and the recruitment department checks and approves them. Therefore, it is worth thinking about the selection.
What is important!
McDonald's reserves the rights to the companies. The franchise is granted only to one person. However, the franchisee has a free hand in managing the entire restaurant. He can hire managers, supervisors and decentralize his authority. Importantly, McDonald's is not completely interested in someone who just wants to place their capital in the restaurant, they demand active involvement.
The next level
If you prove yourself as a franchisee, handle the running of the restaurant, comply with the given requirements and the needs of guests, McDonald's leaves the door open for you to open another one. Admittedly, this actually has to be decided by the entire local department, but it is another option for growing your business. So actually, McDonald's franchise profit highly depends on your capabilities.
The full cost of McDonald's franchise is quite substantial, but adding all the benefits together, it doesn't come out so pale. We have tremendous support from the franchisor (who sets clear and transparent terms of cooperation), a chance for financial and investment development. If you have enough capital, are not afraid of hard work and see your future in this industry, get together and open a McDonald's restaurant!
