How much does a McDonalds franchise cost

Open McDonald’s as a franchise partner

Published on 31 Jul 2019

McDonald’s does not run all restaurants in Germany itself, but has more than 80 percent of the businesses run by independent franchise partners. The annual turnover of the German McDonald’s restaurants is around 3 billion euros. If you are interested in a restaurant chain franchise, you can find out more about the requirements and options here.

Open McDonald’s - the requirements

When you open one of the popular McDonald’s restaurants, you are entering into a so-called franchise agreement. This allows you to carry the McDonald’s brand and to sell the registered products in the interests of the company. For example, it is also recorded how the burgers and other dishes are to be prepared and what prices they have.

Before McDonald’s approves you as a franchisee, you are expected to have experience in personnel management. Previous work in the fast food or restaurant sector will further increase your chances. The company itself communicates the following requirements to people who want to open a McDonald’s branch:

  • An entrepreneurial spirit with the pursuit of success
  • Commercial experience (especially in the areas of personnel management and cost management)
  • The willingness to personally, direct restaurant management and the renouncement of any other professional activity
  • The willingness to complete an extensive franchisee training program
  • The possibility to meet the financial requirements according to the McDonald’s guidelines

Financing the restaurant

Before you are allowed to open your McDonald’s restaurant, the fast food chain expects a fair amount of equity. As a rough identification mark as McDonald’s franchise costs 500,000 euros for the opening - too much money for most interested parties.

A alternative is the opening of our own burger shop. On the one hand, you need less equity capital if you decide to rent a property. You may not benefit from the Group's tried and tested concept, but you are free in all decisions regarding the furnishings, menu and all other aspects of your restaurant. Even if you open a restaurant with your own concept, you may still need a loan. However, the loan amount is much lower.

auxmoney loan for the self-employed

What franchising with McDonald’s means for you

When you open a McDonald’s and enter into a franchise agreement, you as a franchisee acquire some rights, but also obligations. As a rule, permission to use the "McDonald’s system" is granted for 20 years at a specified location. After you have completed your training, you will be your own operator of the restaurant, but will continue to be accompanied and controlled by the company. McDonald’s also supports its franchisees with any questions they may have. Furthermore, all products and devices that are used to prepare food and drinks are purchased from McDonald’s. Therefore, no changes may be made to the products. You and your employees must also adhere to the standards prescribed by McDonald’s at all times.

As a new franchisee, you will either take over an existing restaurant or be employed in a completely new business. Please note, however, that McDonald’s selects its own locations and you should therefore not necessarily be tied to your place of residence. Furthermore, it should be clear to you that you will take over the management and responsibility for around 50 employees in your new fast food restaurant and that you should therefore definitely have experience in personnel management. When you open your new McDonald’s, there can only be one contractual partner at a time, so you cannot share this task with anyone.

The conditions for McDonald’s franchisees

Your contract with McDonald’s stipulates that you are the franchisee 5 percent of net sales have to submit. McDonald’s cites the awareness of the brand, the know-how provided, the further development of the brand and other services to the franchisee as the reason for this. At least more 5 percent Of the net sales, your McDonald’s restaurant has to invest in advertising, with a large part of this money flowing into a "joint advertising fund" for national and regional sales promotion. A part is also available to your restaurant for local advertising, which is of course largely responsible for the success of your McDonald’s branch.

The way to personal responsibility

You should not underestimate the prerequisites, duties and tasks associated with opening McDonald’s branches. You not only have to have enormous motivation and experience, but also have a lot of capital. Nor can you just rest on the McDonald’s brand if you want to be successful. Finally, you should also be aware that you bear certain entrepreneurial risks. If you want to express your creativity and make your own decisions, the franchise system is not right for you with either McDonald's, Burger King or any other brand - opening your own fast-food restaurant or opening a takeout can be done here rather offer.