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International Business

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MCDONALND'S FRANCHISE

Franchisees are crucial to McDonald's success; they deliver our brand values straight to the customer. Worldwide, over 70 percent of our restaurants are run by independent entrepeneurs.

Thinking About A Franchise?

McDonald's is one of only a handful of brands that command instant recognition in virtually every country of the world. McDonald's began with one restaurant in the US in 1955 and today there are more than 26,500 restaurants in over 119 countries, serving around 39 million people every day - making McDonald's by far the largest food service company in the world.

Franchising is not for everyone though - to operate a McDonald's franchise you need the managerial and personal skills necessary to run a business employing 50 or more people and serving half-a-million customers a year.

You'll also have to make a personal commitment to run the business, day in, day out, for at least 20 years.

It should come as no surprise, then, that our selection process is rigorous. We look for individuals with a demonstrated ability to lead and manage people, good common business sense, and a track record of success in whatever they are doing. A restaurant background is not necessary, nor is a large amount of capital - although you will be asked to make a personal investment in the business. We franchise only to individuals, not to partnerships, absentee investors or families. Becoming a McDonald's franchisee is not a license to print money, but the rewards are undoubtedly there for the earning. And with only 35 per cent of restaurants in the UK operated by franchisees, there are still many franchise opportunities available in this country.

McDonald's Franchise

Hamburgers, chicken, salads

McDonald's brand is in 122 countries around the world. Thirty thousand locations serve 51 million customers each day. More than 70 percent of McDonald's restaurants around the world are owned and operated by independent local businesspeople.

In addition, the company operates Boston Market. It also has a subsidiary, Redbox, which in 2003 started as 18-foot wide automated convenience stores, but as of 2005 has focused on DVD rental machines.

Most standalone McDonald's restaurants offer both counter and drive-through service, with indoor and sometimes outdoor seating. The Drive-Thru, Auto-Mac, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the former two steps are frequently combined. In some countries "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service.

Please Note: The operators of McDonald's, may not have verified the accuracy of the franchise information contained within this website. For accurate up-to-date information, customers are strongly recommended to visit the official McDonald's website.

Start-up Costs & Franchise Fees

How much does it cost to open a McDonald's franchise?

Total Investment: $655,750-$1,225,000

Initial Franchise Fee: $45,000

Royalty Fee: 12.5%+

Advertising Fee: N/A

Franchise History

When did the first McDonald's open? 1955

When did McDonald's start franchising? 1955

Year U.S.A. Canada International Corporate

2005 11632 903 9878 8096

2004 11629 860 9694 8038

2003 11533 843 9740 8065

2002 11276 832 9850 8262

2001 11051 812 9455 6918

Financing Options

Expense In-House Third Party

Franchise Fee No No

Startup Costs No No

Equipment No No

Inventory No No

Accounts Receivable No No

Payroll No No

Training & Support

Training

, Available at headquarters: 1 week , At local McDonald's restaurant: 12-24 mos. full time

Support

Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives,

Marketing

,

Business Operations

82% of all franchisees own more than one unit

Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

Qualifications & Business Experience

Business Experience:

* Industry experience

* General business experience

* Marketing skills

McDonald's Franchise Profile

Fast Food Pioneers Stay One Step Ahead

When you think of fast food, McDonald's is likely to pop into your mind. As far as fast food pioneers go, if there is such a term, McDonald's leads the pack. Like all great inventions, imitators come along who try to duplicate, improve upon and cash in on the popularity of a good concept. These days there is a McDonald's in every populated town, and, most likely at least one other fast food chain, if not dozens of competitors. Brands like Jack in the Box and Subway are picking up steam by targeting a younger generation of health-conscious eaters, as well as continuing to romance the French Fry and hamburger loving masses who've grown up on McDonald's. So how it is that McDonald's continues to lead the pack? Nearly 50 years of experience may have something to do with it.

On April 15, 1955 families piled into their shiny, new Fords and headed

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