McDonald's has more than 2,400 owner/operators in the United States, and selling franchises is an important part of McDonald's business strategy. The company is very selective in granting franchises, and prospective franchisees need to demonstrate a solid commitment to McDonald's, as well as possess substantial business or restaurant experience and sufficient liquid assets. Only about 1 percent of applicants are accepted as McDonald's franchisees.
Personal Qualifications
McDonald's has minimum personal requirements that must be met by all potential franchisees. These include business experience at the managerial level and a demonstrated ability to develop and carry out a business plan. A commitment to franchising, an understanding of business finance and a willingness to work on site in the restaurant are also important. Potential restaurant owners must also be willing to train with McDonald's for up to nine months before opening their restaurant, and must demonstrate the ability to manage and motivate employees.
Financing
Franchisees must make a down payment when buying a McDonald's restaurant. This is equal to 40 percent of the total cost of a new restaurant, or 25 percent of the total cost of an existing restaurant. This money must be paid using non-borrowed liquid assets, such as cash, securities, bonds or business or real estate equity other than your own home. Before you can be considered by McDonald's, you will need to demonstrate that you have at least $500,000 in non-borrowed liquid assets. McDonald's does not provide financing for its franchisees, so you will also need to arrange additional financing. Most McDonald’s owner/operators have entered the corporation by purchasing an existing restaurant. To open a McDonald’s franchise, however, requires a total investment of $1.06 million-$1.9 million, with liquid capital available of $500,000. The franchise fee is $45,000.
Application
The process for opening a McDonald's begins with your application to McDonald's Corporation. If you meet the company's initial personal and financial qualifications, you will be asked to spend three days in a McDonald's restaurant, working and learning about the business. If the company is satisfied with your performance during this time, you will be invited to a further interview to discuss training and finance.
Training
Before you can open a McDonald's franchise, you must complete a training course run by McDonald's Hamburger University. The training program is conducted in part at the Hamburger University campus in Oak Brook, Illinois, in part online and in part in individual McDonald's restaurants. Trainees must complete a range of learning objectives before they can qualify to own a franchise. Depending on previous experience, the complete training program can take between nine and 24 months. Training may be taken on a full-time or part-time basis.
