McDonald's

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.

Internal Links

• The McDonaldization of Society (Book)
• Chick-fil-A
• McDonald's franchise FAQ - [6]
• McDonalds
• Time to Reach $1B Revenue