McDonald's: Difference between revisions

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*Typical rent is 22% of gross [https://www.google.com/search?q=what+is+the+typical+mcdonalds+rebt&oq=what+is+the+typical+mcdonalds+rebt&gs_lcrp=EgZjaHJvbWUyBggAEEUYOdIBCDkxMjRqMGo5qAIAsAIB&sourceid=chrome-mobile&ie=UTF-8]
*Typical rent is 22% of gross [https://www.google.com/search?q=what+is+the+typical+mcdonalds+rebt&oq=what+is+the+typical+mcdonalds+rebt&gs_lcrp=EgZjaHJvbWUyBggAEEUYOdIBCDkxMjRqMGo5qAIAsAIB&sourceid=chrome-mobile&ie=UTF-8]
*Other fees are 10% (marketing and support)
*Other fees are 10% (marketing and support)
*$160k per avg franchise. This must be net, no?


=More=
=More=

Revision as of 18:25, 28 October 2024

Intro

A successful franchise worth studying. Franchise startup costs $500k cash down, and total of $1-2M. 4% franchise fee monthly + facility rental fee.

https://www.thebalancesmb.com/requirements-to-open-a-mcdonald-s-franchise-1350970

  • Gross of USA McDonald's is $2.7M on average according to the article above. Net is $150k average (global?) - [1]
  • Interestingly, chick-fil-a accepts 80 of 20,000 applications per year, but has only a $10k franchise fee. It has a unique business culture.

Finances

  • Typical rent is 22% of gross [2]
  • Other fees are 10% (marketing and support)
  • $160k per avg franchise. This must be net, no?

More

  • Pros and cons of franchising - [3]
  • M&A and no money down techniques - [4]
  • 3000 franchises in USA generate $1T revenue in USA - [5]. That is 5% of GDP.

Links