Many businessmen and entrepreneurs want to franchise a business that is established already. There are many franchises available and all you have to do is choose the right for you. McDonald is one of the prestigious companies who offer franchising.
The following are the requirements for franchising McDonald’s Restaurant
• Financial Requirement
- Initial down payment of 40% of the total cost for a new restaurant and 25% of the total cost for an existing restaurant. This down payment should come from non-borrowed personal resources such as cash on hand, securities, bonds, business or real estate equity and debentures. The minimum amount for a down payment will differ depending from restaurant to restaurant but generally, they require a minimum of $750,000 of non-borrowed personal resources to consider you for a franchise.
- McDonald also required the buyer to pay a minimum of 25% cash as down payment toward the purchase of a restaurant while the remaining balance of the purchase price can be financed for a
period of no more than 7 years. - There is an on going fee to pay during the term of franchise such as the service fee and rent. The service fee is a monthly fee based upon the restaurant’s sales performance while rent is a monthly base rent or percentage rent that is a percentage of monthly sales.
• Other Requirements
- Business Experience. A person who have established successful ownership or management of multiple business units.
- Business Plan. Develop a business plan
- Manage finances well. With thorough understanding of the business financial statements.
- Training. Should complete a comprehensive world class training program in all aspects of operating McDonald’s restaurant business.
- Management Skill. Should personally manage the day to day operations of the restaurant business.
- Credit History. With good credit history