Yes, McDonald’s offers international franchise opportunities to interested investors who are ready to join the success story of the global brand. McDonald’s success today is largely attributed to its franchising model, consistency, and of course, innovation. Through their franchising model, the company was able to enjoy rapid growth. McDonald’s has about 34,000 outlets worldwide and operates in about 118 countries across the continent.
About McDonald’s
McDonald’s is the world’s largest restaurant chain by revenue, serving over 69 million customers daily in over 118 countries across approximately 36,900 outlets as of 2016.
They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona. Although McDonald’s is known for its hamburgers, they also sell cheeseburgers, chicken products, French fries, breakfast items, soft drinks, milkshakes, wraps, and desserts.
Arcos Dorados Holdings Inc. is a company that owns the master franchise of the fast-food restaurant chain McDonald’s in 20 countries within Latin America and the Caribbean. It is the largest McDonald’s franchisee in the world in terms of system-wide sales and number of restaurants.
When Did McDonald’s Start Going International?
McDonald’s first began to expand internationally in 1967 with the opening of restaurants in Canada. In the 1970s and 1980s, globalization gave them the push needed to sell the ‘American Dream’ internationally.
Do McDonald’s Franchise Owners Make a Good Income?
Yes, of course, some McDonald’s franchise owners are naturally going to make more than others, but most franchise owners still pull in an estimated yearly profit of roughly $150,000 (via Fox Business).
How to Open a McDonald’s Franchise in Your Country?
Before you can get the approval to open a McDonald’s franchise in your country, your McDonald’s location will have to meet stringent inspections to ensure its food preparation, storage, and counter areas are safe, clean, and sufficiently large to meet clients demand. The seating area is subject to safety and health inspections and will be reviewed in terms of traffic flow and maximum capacity.
Make Sure You Have Enough Capitalization
So also, before you can open a McDonald’s franchise in your country, you must have a net worth of more than $464,500.
The money will cover your building and real estate costs, the cost of equipment and signs, the costs of licenses and permits, the cost of uniforms, the cost of insurance, etc.
Evaluate Your Prior Experience and Strengths
Before you consider opening a McDonald’s franchise in your country, you should thoroughly evaluate your prior business experience.
Assess Market Availability
Another important consideration before opening a McDonald’s franchise in your country is to make sure there is a market for your products in the location. You may want to look at the market availability for McDonald’s franchises and see if there are available markets in your location of interest before proceeding with the franchising application.
Submit Your Application
Your application will be reviewed by the McDonald’s franchise team. You will be emailed a confirmation receipt upon reception of your online application, where we will additionally provide the contact details of the franchise owner.
Receive Approval and Open Your McDonald’s Franchise
After submitting your applications, you will receive franchise approval once your financial and background checks are completed. Approval will only be given to candidates who meet all the requirements of franchise owners.
Financial Requirements for Opening McDonald’s Franchise
- Franchise fee: up to $45,000,
- Total initial investment range: $464,500 to $2,306,500.
- Initial investments: $464,500 – $2,306,500
- Liquid Cash Requirement: $500,000
- Ongoing Royalty Fee: 4%
- Ad Royalty Fee: $4%+
The data above, compiled from the McDonald’s FDD (Franchise Disclosure Document) 2020, represent the estimated financial range for the initial setup and first 3 months of operation for a new McDonald’s restaurant.
Cost of Opening McDonald’s Franchise
Here is the Estimated Franchise Cost for Opening McDonald’s Franchise in Some Countries:
United States of America
In the United States, the total investment to start a McDonald’s Restaurant is from $464,500 to $2,306,500.
Canada
The value of the business is negotiated between buyer and seller. A minimum of $700,000 is typically required for the purchase of a McDonald’s restaurant franchise in Canada, in combination with 75% bank financing.
The United Kingdom
In the United Kingdom, for 80% of McDonald’s restaurants franchised in 2018, the cost of purchasing the franchise rights and equipment was between £350k and £1,85 million and this was priced on profitability over a 10-year period. These prices are based on buying the right to run a McDonald’s company-owned restaurant.
Malaysia
The initial investment you will need to start a Mcdonald’s franchise in Malaysia would be about RM5 million depending on your location and operation costs. The franchise fee for this business is USD22,500 for the first 10 years. A percentage of your monthly sales will be paid as a rental to the company.
India
Opening a McDonald’s franchise in India requires a total investment of Rs 6.6 Cr-Rs 14 Cr, with liquid capital available of Rs 5 Cr. The franchise fee is Rs 30 lakh. As a franchise, you will be charged a service fee of 4% of total sales.
Indonesia
In Indonesian currency, the investment required to open a McDonald’s franchise comes from around Rp 14,985 million to Rp 31,587 million.
Philippine
McDonald’s opened its doors to franchising to Filipino entrepreneurs in 1985 and has since expanded its network to over 300 franchised restaurants with more than 100 franchisees, most of whom have been part of the McDonald’s Family for 5 to 15 years. In Philippine currency, the investment comes around Php 54,730,340 to Php 115,357,900.
Pakistan
In Pakistan, the franchise rights for McDonald’s are owned by Siza Foods Pvt. Ltd., a subsidiary of the Karachi-based Lakson Group of Companies. In December 2015, the fast-food chain opened its doors to its first restaurant in the northwestern city of Peshawar, with a seating capacity of 200. In Pakistani currency, the investment comes from around PKR 165,735,700 to PKR 349,329,500.
United Arab Emirates
The owner and operator of McDonald’s restaurants in the UAE is proud to serve the UAE some of its favorite food since 1994. In the currency of the United Arab Emirates, the investment comes from around AED 3,882,860 to AED 8,184,100.
Nigeria
You must have at least N23,000,000 in liquid assets to open a McDonald’s. On top of initial investments that can exceed N300 million, most chains charge monthly fees that can cost up to 12% of gross sales.
South Africa
McDonald’s South Africa estimates the cost of a franchise to be anywhere between R4 million – R6 million, depending on the type of restaurant and other factors. Applicants are also expected to have a minimum of 35% of the purchase price of a restaurant in unencumbered, non-borrowed cash.
Brazil
McDonald’s restaurant is one of the largest employers in Brazil, employing over 33.000 people. The necessary initial investment to open a McDonald’s franchise is BRL 2.5 million.