Did you ever want to buy a McDonald's franchise ?? Well you better have Plenty of $$$$$$

[Betallsports]

Owning a McDonald's franchise can be a lucrative business, but it requires a lot of cash.


The average McDonald's restaurant generates $2.5 million in sales annually, making it the second highest-grossing chain in the US by sales per unit behind Chick-fil-A, according to QSR Magazine.


But in order to open a single restaurant, the company requires that potential franchisees have liquid assets of at least $750,000.


Startup costs, which include construction and equipment expenses, average between $955,708 and $2.3 million, according to McDonald's. The total is determined by the geography and size of the restaurant, as well as the selection of kitchen equipment, signage, style of decor and landscaping, the company says.


Franchisees must pay 40% of the startup costs with cash and other non-borrowed resources, while the rest can be financed.


In addition to those costs, McDonald's charges a $45,000 franchisee fee and an ongoing monthly service fee equal to 4% of gross sales. Franchisees must also pay rent to the company, which is a percentage of monthly sales.


Franchisees have historically paid about 8.5% of sales in rent costs, though some pay as much as 12%, according to a 2013 Bloomberg report .
McDonald's franchisee startup costs are similar to those of KFC, Wendy's, and Taco Bell.


Subway, by comparison, is far less expensive, costing between $116,000 and $262,850, according to the company. Subway also requires minimum liquid assets of only $30,000 to $90,000.

 

[HarryCaray]

Yeah you would think Subway would be a lot cheaper cause you don't need shit for equipment. Couple bread ovens, a toaster, a deep freeze, and a walk-in cooler...that's about it.

 

[MotorMouth]

Not many people realize that Subway has way more locations than Mc d and that lead
will only increase in years to come.

From bloombergs

In 2013, Subway’s more than 40,000 locations outstripped McDonald’s (MCD) 35,400 and Starbucks’ (SBUX) 20,000. Yum’s (YUM) three brands combined—KFC, Pizza Hut, and Taco Bell—had about 40,300 locations. This year McDonald’s plans to open 1,500 to 1,600 shops, and Starbucks’ target is 1,500, mainly in the Americas and the China-Asia Pacific region.

Subway has been pursuing rapid growth for the past decade (see this map of its expansion over the years). According to figures from Chief Development Officer Don Fertman, the chain has averaged more than 2,000 new spots per year for the past 10 years, but international expansion has bumped up the rate to more than 2,500 in 2012 and more than 2,700 in 2013.

 

[MattyMatt]

Cost my folks $100k for a Subway back in the day.

I wouldn't eat at one now if you paid me...

 

[BAGIANT]

When I was in college in the mid '60's, I read you could get a McDonalds franchise for 25-35 k. My father was retired but had been in the restaurant business his whole life. He had property in Union N.J which he could have built on and had plenty of cash to acquire a franchise. I begged him to get the franchise, but he was set in his ways and was happy being retired. He always felt that in the restaurant business you had to be there as many hours as it was open. He had two heart attacks being there all the time. He didn't understand that things were being computerized and that McDonalds used portion control to stop theft. If he had gotten me that franchise I could have been set for life because at that time, once you had a franchise, you got a certain area where you could open more McDonalds. Oh well!

 

[texansfan]

Chik-Fil-A has to make a killing. The one right by my house has cars constantly lined up into the street waiting to get into the parking lot.

 

[C.P.]

haha... my buddy's GF has 2 MD"s

and they are the cheapest prinks EVER...HAHA

I just shake my head....

too funny

 

[CHOPTALK]

You also have to work at McDonald's as an employee for at least 1 year to be eligible to own a McDonald's .

 

[Albatross]

You also have to work at McDonald's as an employee for at least 1 year to be eligible to own a McDonald's .

Makes sense

 

[Haystacks]

what a great stock its been for 25 years. they never miss a dividend and have gone up up up..

 

[C.P.]

You also have to work at McDonald's as an employee for at least 1 year to be eligible to own a McDonald's .

Chop...you're a smart man .. I don't lie, I just don't...say much..

His GF has 2 Places....

1...the GOLD COAST
2... west of River North ..by he River....

both are NICE.....

but again they R u SO CHEAP...HA

 

[MotorMouth]

I never think of McD franchise owners as rich people , just highly paid upper middle class people who
deal with a lot of shit.

 

[Shub]

I would feel bad owning one. Almost as bad as a drug dealer.

 

[MotorMouth]

I would feel bad owning one. Almost as bad as a drug dealer.

This really isnt an unfair statement although most people on their smoke break would probably say
that its not remotely the same thing whilst they guzzle down a BIG GULP.

 

[CoachCB]

A couple of guys I used to work with on the Jacksonville Fire Department (along w/ Coach LT) started the Firehouse Subs business and they are now franchising. They have a program that you can work at a Firehouse Subs and eventually become a franchise owner. They've expanded across most of the Southeast and into the Northeast and Las Vegas. They were rated the top franchise business by some magazine recently. Their father (Captain Sorenson) was also on the job when I got hired and he was the "video guy" (worked at the training academy and did all of the filming/PR stuff). Great guy too. They have a hot sauce named after him. He's also in all of their radio commercials.

 

[EverFresh]

A couple of guys I used to work with on the Jacksonville Fire Department...blah blah blah...

I thought you were in "intel", or was that just last weeks story?

 

[CoachCB]

I thought you were in "intel", or was that just last weeks story?

Not that it matters....but I retired as a professional firefighter. During that time I maintained a career as an Officer in the Reserves. I came on active duty and still serve in the Reserves. I work fulltime, now, as an Intel officer. As I said, my knowledge of Intel (to reference your STUPID post about that piece of American TRASH, Edward Snowden) is much more extensive than yours..... Anymore brain busters?

 

[kramer1]

couldnt peddle that trash, i cant even eat it without being sick

 

[EverFresh]

Not that it matters....but I retired as a professional firefighter. During that time I maintained a career as an Officer in the Reserves. I came on active duty and still serve in the Reserves. I work fulltime, now, as an Intel officer. As I said, my knowledge of Intel (to reference your STUPID post about that piece of American TRASH, Edward Snowden) is much more extensive than yours..... Anymore brain busters?

So, in other words, you're a lower level goon that likes to toss around terms like "intel officer" to impress the newbies on various forums and then threaten to physically harm anyone that dares disagree with you. Mr. Internet Tough Guy,…you calling an American Hero like Edward Snowden is pretty ironic. Too bad you're too blind to see the irony

 

[CoachCB]

So, in other words, you're a lower level goon that likes to toss around terms like "intel officer" to impress the newbies on various forums and then threaten to physically harm anyone that dares disagree with you. Mr. Internet Tough Guy,…you calling an American Hero like Edward Snowden is pretty ironic. Too bad you're too blind to see the irony

Awwweee. Poor Ever Fresh. I'm sorry you never accomplished anything in your life. I'm pretty happy w/ the service I've provided to my country via my community as a professional firefighter and a military enlisted man AND officer. Now that I'm retired from the fire service and collecting a nice pension that I earned over 18+ years, I am in service to my country as a Federal Government employee working as an Intel officer. I'm sorry you don't know what an Intel officer is, because you obviously have no clue about the Intel community (since you think that piece of American TRASH Ed Snowden is a hero). But my official job title is Intelligence Research Analyst - Senior Watch Officer. I'm a GS 14 and make a decent living. If you think I'm concerned about a loser like you that had to run to live in a foreign country because you couldn't handle it here, well that makes me all warm and fuzzy inside. I like how you thought you caught me bs'ing about my job. Yes, the boys from the Jacksonville Fire Department started the Firehouse Subs chain...and I'm proud to say I worked with them.