McDonald’s Franchise

Erica Durance once said, “We all need to make time for a burger once in a while”. Well that’s a fact and whenever we plan any outing, it seems to be incomplete without a perfect Meal. From the word ‘Meal’ itself our mouth starts craving for a Burger Meal. Are you ready to do larger good to humanity by bringing them the World’s delicious and fastest meals and that too while earning profits? We are here to guide you how and why to invest in the biggest Global fast food giant McDonald’s whose vision is to be their customer’s favorite while they deliver the fastest meals to their customers. Having a strategy of ‘Plan to Win’, McDonald’s need no introduction in today’s fast moving world. We are here to help you win in your business battles.

McDonald’s FRANCHISE STATS

MINIMUM INVESTMENT

EUR 110,000

TOTAL INVESTMENT

EUR 400,000 to 80,000

FUNDING SUPPORT

YES

TRAINING FEE

EUR 750/month

BUSINESS CATEGORY

Food & Drink

TRAINING PROVIDED

YES

About McDonald’s Franchise

McDonald’s is an American fast food giant which finds its roots in in San Bernardino, California, United States since 1940. Richard and Maurice McDonald started it as a restaurant. But later on it was renamed to a hamburger stand. For the first time Ray Kroc in 1955 joined the already successful running venture as a franchise agent and later on even went on to buy the chain from the McDonald brothers. The original headquarters of McDonald’s was in Oak Brook, Illinois, but now it has been shifted to its global headquarters in Chicago this year itself in 2018.

The long term vision of Ray Kroc was to build a food chain system that would be famous for providing high quality food and must have uniform methods of preparation. He wanted to serve food which tasted just the same from any part of the world.

In order to achieve his larger goals he brought both franchisees and suppliers on to the same page and aligned them into his vision. He promoted the slogan, “In business for yourself, but not by yourself.” He had this philosophy which was based on three pillars of strength that is McDonald’s franchisees; McDonald’s suppliers; and McDonald’s employees. He laid a strong foundation by aligning all the three pillars to his larger goals.

Hence align to his vision of producing quality products and making your restaurant as your customer’s favourite place. Also what makes McDonald’s stand out from the rest of the food chains is its faster delivery system. McDonald’s started off with selected food items and still it believes in retaining the quality rather than increasing the quantity of the items. The founder’s vision is best explained in his famous quote, “If I had a brick for every time I’ve repeated the phrase Quality, Service, Cleanliness and Value, I think I’d probably be able to bridge the Atlantic Ocean with them.” – Ray Kroc.

Potential of McDonald’s Franchise 

With the wide reach of 30,000 restaurants spread across in 119 countries McDonald’s is currently serving approximately 68 million customers every day. McDonald’s is the safest bet in terms of Business potential. The Golden Arches logo of McDonald’s is enough for people of all age groups to identify the brand. McDonald’s has innovated with its marketing strategies and potential by being pioneer in the combo meal trends and drive through. It was the first company to have opened as a restaurant and then rechristened it to a Hamburger stand. Hence one must be rest assured for a bright potential by associating with McDonald’s Franchise.

McDonald’s Franchise Cost & Fee Information

 If we go by figures then more than 80 percent of McDonald’s worldwide and approximately around 70% of UK restaurants are operated by franchisees. The company also finds its mention in the top Magazines such as Entrepreneur Magazine and features in its Top 10 Franchises in the world. It was technically Ray Kroc who was the first to buy a Franchise and then eventually went on to own the company. From his growth rate, Investing in a McDonald’s Franchise is worth the investment of £400,000 to £80,000. Also minimum 25% of the investment i.e. £110,000 must be in unencumbered funds rest can be paid via bank loan.

In addition to the above-mentioned investment, one is also suppose to pay a monthly percentage fee to McDonald’s which will be based on the sales and profitability, which usually turns out to be 10% to 18% of the revenue generated. One more addition to this is the 5% service fees for the use of the McDonald’s system to be paid.

McDonald’s also believes in heavy marketing of its new products. In order to keep up this Marketing spirits each restaurant is currently required to contribute 4.5% of net sales. This is not just unidirectional deal, but the Franchise operators will also get to participate and approve the annual marketing plan of McDonald’s.

How to Apply for McDonald’s Franchise? 

There are certain pre-requisites which are to be kept in mind before applying:

  • You are not required to be a millionaire but you must have £110,000 in unencumbered funds. Once you are associated with McDonald’s you may get better rates by its banking partners for fund allocation.
  • You may not necessarily be required have a restaurant experience, even if you have owned a business before you are capable of building a large team.
  • You will have to undergo an unpaid training of 9 months costing you £750.
  • You are required to pay full attention and divest from all other business interests.
  • Make sure before you apply, you have attended an insight day or franchise fair within the last 12 months.
  • You might be required to Relocate anywhere in UK.
  • You will have to pay ongoing fees usually accounting from 10% to 18% of sales and profits plus 5% service fees for using the McDonald’s system.
  • You are required to pay 4.5% of your sales in advertising.

How to Apply

  • Click http://www.mcdonalds.co.uk/ukhome/People/Franchising.html/applying.html to apply for a McDonald’s Franchise.
  • Make sure before you apply, you have attended an insight day or franchise fair within the last 12 months before applying.
  • You will be asked to submit the following:
    1. Current employer address and earnings
    2. Previous two employers’ addresses and earnings
  • Fill all the required fields.
  • After you are done filling now you can click red button ‘Apply to be a Franchise’.
  • Now you must wait to hear from the company.

McDonald’s Franchise Training and Support 

McDonald’s believe in quality and standardization and therefore provides 9 months of unpaid training to its new members of the McDonald’s Family. It will rather cost you around £750.The main aim or vision of the owners was to maintain same taste and food quality from Alaska to Alabama. In order to maintain and retain that level of standardization in terms of faster delivery and taste one is required to undergo training period of 9 months without fail before franchising the outlet.

McDonald’s Franchise Profit Estimates

On an average a McDonald’s restaurant generates $2.5 million or £1.93 million in sales annually. Also the above mentioned figures, according to QSR Magazine McDonald’s have made second highest grossing chain in the US by sales per unit. Therefore the market potential of profiting with McDonald’s Franchise is enormous.

McDonald’s Franchise Contact Information

Click on this link https://customerservices.mcdonalds.co.uk/hc/en-gb/requests/new And you can type your questions and they will revert on your email Id.

Contact Customer Services team on +44 (0) 370 524 4622 during the following hours below:

Monday – Friday: 8am – 6pm
Saturday: 10am – 4pm
Sundays & Bank Holidays: Closed
Christmas Day: Closed
Tel: +44 (0) 370 524 4622

By Post:

McDonald’s Restaurants Ltd
11-59 High Road
East Finchley
London
N2 8AW

Frequently Asked Questions

  • Can you open a McDonald’s Franchise?

Of course yes, Almost 80% outlets worldwide are operated by Franchises.

  • How much is required to open a McDonald’s Franchise in the UK?

Anywhere from £400,000 to £80,000 is required. Also minimum 25% of the investment i.e. £110,000 must be in unencumbered funds rest can be paid via bank loan.

  • Is it safe to invest in McDonald’s?

~ According to QSR Magazine McDonald’s have made to the second highest grossing chain in the US by sales per unit. Therefore the market potential of profiting with McDonald’s Franchise is enormous.

  • What is the minimum profit one can expect by the end of the year?

~ On an average a McDonald’s restaurant generates $2.5 million or £1.93 million in sales annually.

  • What are different kinds of costs apart from initial investment involved in opening a McDonald’s Franchise outlet?

~

  • You will have to undergo an unpaid training of 9 months costing you £750.
  • You will have to pay ongoing fees usually accounting from 10% to 18% of sales and profits plus 5% service fees for using the McDonald’s system apart from the initial investment.
  • You are required to pay 4.5% of your sales in advertising.

 

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