Arguably one of the most well-known franchisers in the world, McDonalds is also a globally recognised brand.
About The Company
When people talk about franchises it is not unlikely that they are thinking of McDonalds. McDonalds have pioneered franchising in the UK. Nowadays McDonalds aren’t the biggest fast food franchiser, that title now belongs to sandwich company Subway, yet despite this the brand name is more valuable in the UK. When buying a franchise you are buying the brand, that is the long and short of it, and I don’t think there is a better known fast food brand in the UK. As well as this powerful brand, McDonalds are a full member of the British Franchise Association and took home the bfa HSBC Franchisor of the year in 2011.
How to Apply and Training
The application process for becoming a McDonalds franchisee is quite lengthy and rather intense. This is understandably as McDonalds have a certain standard that they expect all restaurants to adhere to. This includes you as a franchisee being able to demonstrate people, management and leadership skills as well as strong financial acumen. As a franchisee you are expected to be involved in all aspects of the business form the kitchen to the checkouts. It is also expected that McDonalds franchises actively engage their local community. In return for this you can expect a high standard of training that would be in line with what you would expect from a multinational company.
What is the Initial Investment?
A new McDonalds franchise will typically cost from £125,000 up to £325,000. It is expected that you will have 25% of this in liquid funds. These start-up costs cover your £30,000 franchise fee and a £5,000 training deposit which is refundable.
How Much Can This Earn?
McDonalds say that an average store will have a turnover of anywhere between £95,000 and £200,000 per annum.
Buying a McDonalds franchise is about buying into a globally recognised brand with a built in market that is well into the millions. Despite the fact that McDonalds continues to grow at an exponential rate, each store seems to continue to do well in the main. If you have the finances in place, I don’t think that you can go far wrong with a McDonalds franchise.