How much does a McDonald's franchise cost? Is it worth it?

Want to find out how much a McDonald's franchise costs and how to become a franchisee? Read the text and find out!

McDonald's is a company that is present in 119 countries and territories. This presence in so many places is largely through franchises. 

We are not going to say that anyone can have a franchise of the brand, in fact, no, because it is necessary to invest a certain amount for this and go through a rigorous evaluation.

In fact, many people are curious to know how much does it take to be responsible for a McDonald's franchise, even if it is just out of curiosity.

We can say that it is worth millions. Given such a significant amount, is it worth the investment?

Keep reading and find out! 

How much does a McDonald's franchise cost?

If you are a customer of the brand, you may have already asked yourself how much does a McDonald's franchise cost.

Many times, it wasn't even out of financial interest, but out of gastronomic interest, just like the character Chaves, who wanted to have a restaurant so he could lock himself in and eat all the food.

Jokes aside, as it is a popular fast food chain, people are interested in investing in a franchise of the company.

Therefore, it is common for people to want to know how much this process costs and how it works.

According to the Brazilian Franchising Association, to open an MC franchise, in its simplest model, which is a food court in shopping centers, it is necessary to pay at least R$1,670,000.00. 

To have a street store, the investment can reach R$1,4,5 million, counting only the costs of building and opening the units.

The value, at first, may scare some investors, however, it is an investment with a guaranteed return, which justifies its high value.

Before we continue, let's look at some information that may be important for a better understanding of the text.

• Franchising is a licensing sales system in which the franchisor grants the franchisee the right to use its brand… (Wikipedia).
• Mc is the largest and best-known food chain in the world.
• It is a major employer in Brazil, currently employing more than 50,000 workers in our country alone.
• More than three thousand points distributed between restaurants, McCafés and desert centers.
• McDonald's makes about $14,750,000 a day.
• It serves approximately 68 million customers daily.

The data was to help you recover from the scare of more than R$2,670,000.00. Now we can proceed!

How much does McDonald's make per day?

The brand is operated by Arcos Dourados, the company's franchisee throughout Latin America. It has been associated with the ABF (Brazilian Franchising Association) since 1992. 

According to information provided by Arcos Dourados to ABF, the brand makes a daily profit of U$75 million.

However, it is not possible to determine how much a franchise makes per day. This is because the amount depends on many factors.

However, some surveys indicate that a franchise's revenue can vary between R$1,400,000 and R$1,560,000 per month.

Have you ever been to a McDonald's on a Saturday night? It could be a franchise located at the end of the world, there is always a line to be served.

The most intriguing thing, let's say, is that people face huge lines to consume the brand's products, sometimes, just because they have a Happy Meal toy as a differential.

Obviously, this is not evidence to determine anything, but it proves the influence of the brand and how much it is preferred among the majority of consumers.

How do franchises work?

As you have already read, in short, a franchise is when the franchisor grants the franchisee the right to use the brand, patent, infrastructure, etc. It is like acquiring a license. 

In addition to knowing How much does a McDonald's franchise cost?, people also want to find out how this process works.

The franchise works with a division of investments. R$1,400,250 must be allocated to the franchise fee, that is, the amount for the right to use the brand.

In addition, 5% of gross revenue returns to the company as royalties, and 4.5% of gross franchise revenue as advertising fees.

These percentages must be paid monthly and are essential tools to keep the franchise running.

In addition, it provides access to the network's know-how, in other words, the network's professional and business knowledge, tactics and strategies are passed on to the franchisee. 

With this knowledge, she knows exactly how to manage the unit. 

The franchisee receives a ready-made business model, high-level training and a professional support network.

Speaking about the return, it can take up to 60 months. See more details on how it works in the next topic.

How to open a McDonald's franchise?

The headquarters responsible for keeping the franchise system running in Latin America is Arcos Dourados. 

She is also responsible for evaluating and accepting new franchise candidates. 

When the entrepreneur receives authorization to open a unit, he begins to receive all the support necessary to open the new store.

The entrepreneur must choose one of the available systems, which can be, for example:

• Store on own land;
• Kiosk;
• Restaurants.

Who wants to know how much does a McDonald's franchise cost, You should be aware that the value varies depending on the model of the system chosen.

The company does not approve opening to small cities where

the number of inhabitants is less than 100 thousand.

The analysis carried out for approval is very rigorous and aims to select only the best managers to continue with the business, therefore, the selection is divided into several stages, included in 4 categories:

1. Enrollment;
2. Routine;
3. 36-week training;
4. Inauguration.

The company provides some channels for those who want to be a franchisee, they are:

• [email protected]
• (11) 4196-9554

Another communication channel is the MC website, but there is no online service channel there.

However, we found many articles about franchises that are very useful for those who are opening a franchise.

What is the ideal profile to invest in the franchise?

In addition to having more than R$2 million, you also need to be a good manager if you want to pass the evaluation process. 

To have a successful business, develop skills such as:

• Leadership;
• Executive management;
• Resilience;
• Negotiation skills;
• Emotional intelligence;
• Financial management.

In addition, it is essential to be available to dedicate yourself to the restaurant full time and to live in the same city where it will be located. 

It is important to note that it will be necessary to send a CV at the time of registration, therefore, it is important to prepare a attractive resume.  

 Is it worth opening a McDonald's franchise?

If we consider that we are talking about an investment with a guaranteed return and citing all the advantages it offers, the answer we expect is yes, it is worth investing in a McDonald's franchise. 

However, the correct answer would be yes, but it depends.

First of all, we are talking about an investment, and even with the promise of a certain return, any investment offers risk and every good investor knows this.

Therefore, it is important to keep your feet on the ground. 

The success of this type of investment is linked to good planning, good management and other variables that can affect the enterprise.

However, we are talking about a business with high investment, so it is likely to bring good results.

An example of this is the survey that points out franchises with a monthly turnover that can reach more than half a million reais, depending on the model.

Other than that, the advantages give more support to the claim that it is worth opening a franchise of this brand. We highlight advantages such as:

• High level training;
• Specialized support;
• Providers of excellence;
• Access to a proven and successful business model;
• Brand with worldwide recognition.

McDonald's is a franchise with great authority in Brazil, being the best known and preferred by Brazilians.

Therefore, the investment already has a large audience, even before it starts, due to the brand's influence.

As it is a brand with a strong presence, profit is almost guaranteed in the long term. In addition, affordable prices also help to ensure success.

However, the entrepreneur needs to dedicate himself and work hard so that everything works out and the results arrive.

The estimate is that the franchise will pay for itself over two years or more.

Conclusion

McDonald's stands out for many reasons due to the quality of its products, affordable prices and service. 

This should be a rule in any company franchise, each one of them must carry the essence of the brand, as it is an important tool for success.

Therefore, in addition to discovering how much does a McDonald's franchise cost, It is essential to know the brand, its business model and the reasons that made it get where it is.

If you find the investment too steep and unviable for your finances, you can try a franchise with a more affordable price.

Node ABF website We found other franchise options, many with more affordable prices and innovative business ideas.

When your store opens, use an organizational chart to help with organizational communication. Read the text and find out how to make one easily!

Nara Sampaio March 10, 2023