How to Become a Franchisee of McDonald's

McDonald’s has been a leader in the fast food industry since its founding by Ray Kroc in 1955. The McDonald’s arches are a familiar site on streets in the U.S. and around the globe. Business opportunities exist for entrepreneurs to become owners of a McDonald's franchise. Most owner operators buy existing franchises from McDonald’s or other franchise owners.

Instructions

1. Apply online to become a franchisee. If selected, you will be interviewed to discuss franchise opportunities. McDonald’s seeks owner/operators who have owned or managed multiple businesses. The ability to understand financial statements and employee management are among the skills sought by McDonald’s.

2. Complete three days in a McDonald’s restaurant to experience the operations and procedures. You will be evaluated and offered an opportunity to discuss the operations. Your personal finances will be reviewed at this time.

3. Complete the McDonald’s training program in 9 to 24 months. The training program prepares franchisee’s to operate a McDonald’s restaurant. The training includes systems management, business management, restaurant management and preparation for ownership.

4. Consider the costs to buy a franchise. McDonald’s requires an initial down payment of 40 percent to buy a new restaurant and 25 percent for an existing operation. McDonald's generally requires you have a minimum of $500,000 of non-borrowed personal assets to be considered for a franchise. You may finance the balance of the purchase price for up to seven years.

Tips & Warnings

• Contact the McDonald’s franchise division for any questions.

• Franchisee’s need acceptable credit to purchase a restaurant.

• McDonald's does not accept every applicant that applies to become a franchisee.

• McDonald’s determine franchise locations.

• Monthly service fees equal to 4% of restaurant sales are payable to McDonald's.

• Monthly rent is due to McDonald's. Rent may be based on monthly sales.

• McDonald's does not offer financing, but has relationships with lenders who provide low rate financing for franchisees.

References

• Mcdonald’s: Application For A Franchise.
• Mcdonald’s: Frequently Asked Questions About The Application Process.
• Mcdonald’s: Frequently Asked Questions About The Qualifications.
• Mcdonald’s: Frequently Asked Questions About The Training.
• Mcdonald’s: Operator Candidate Road Map.

Resources

• Mcdonald’s: First Mcdonald’s Restaurant.
• Mcdonald’s: Purchase Your Franchise.
• Mcdonald’s: Contact A Franchise Division.