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McDonald's franchise cost

A McDonalds franchise should be a licence to print money because the American fast food chain’s brand of quick and cheap food continues to be popular across the globe, and especially in the UK where 1,200 outlets are in operation. The McDonald's franchise cost is a little higher than some rivals but you’d expect that because you’re buying in the brand as much as the ready made customer base.
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Business

The parent company operate around 30% of the franchises in the UK but the other 70% is in the hands of around 150 franchisees who each own on average five restaurants. This is a massive commitment for the men and women who take on franchises for the fast food chain because each and every one of them signs up to a 20 year deal.

Training

A first class training programme is in place and every potential franchisee has to undertake the exhaustive course before their application is fully considered. You’ll also be asked to provide a £5,000 training deposit, which is refundable if your application succeeds and you’re accepted as a franchisee of a restaurant chain.

Financing your franchise

McDonalds operate a wide range of different franchise types so the cost can be anywhere between £125,000 and £325,000. You’ll be asked to put at least 25% of the costs in as unencumbered funds. McDonald’s might agree to accept the remaining 75% under a bank loan but that’s not always been the case. There’s a one-off £30,000 per restaurant “franchise fee” to pay, and when you’re up and running you’ll need to pay a rent for the lease. Service fees and marketing contributions are also required but it’s harder to put a cash figure on these regular bills.

Application form

Check out mcdonalds.co.uk for more details about franchising. This is also where you’ll find the application form.

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