In 1954, Ray Kroc was a distributor for the Multimixer milkshake mixing machine. Mr. Kroc had been a dixie cup salesman and sold several other items before running into the McDonald’s brothers in San Bernandino. The Brothers were uninterested in growing the company, they were quite happy with their successful restaurant and didn’t want much to do with the McDonald’s franchise development idea. They struck a deal that would allow Ray Kroc to open McDonald’s franchises and the brothers could be involved in the management with him. Ray Kroc opened the first McDonald’s restaurant in 1955 in Des Plaines, IL. The McDonald’s chain quickly became successful and eventually the McDonald’s brothers were bought out of the business for $1.7 million each…enough to cover taxes and pay each of them $1 million. In 1965 McDonald’s went public and today is the leading global foodservice retailer with more than 30,000 restaurants, located in more than 100 countries.
Background and Benefits
The McDonald’s business model has always worked, and with national and international advertising powered by many of the world’s largest advertising firms, McDonald’s Corporation manages to serve over 27 million Americans everyday. Owning a McDonald’s restaurant is a tremendous opportunity for a McDonald’s franchisee. Because of the success and demand for McDonald’s franchises, the company is very selective in who they choose as franchise partners. They only seek individuals with significant business experience who have successfully owned or managed multiple business units and have significant financial resources. McDonald’s Corporation makes it clear that they are about growing business, making money, and having fun, and only the serious entrepreneur need apply.
How Much does a McDonald’s Franchise Cost?
It takes a lot of potatoes to make these fries so come prepared. You will need a minimum of $300,000 in non-borrowed, personal resources to be considered for a franchise. Most Owner/Operators enter the System by purchasing an existing restaurant directly from McDonald’s or from a McDonald’s Owner/Operator. A small number of new operators choose to purchase a new facility, but that requires an initial down payment of 40% as opposed to 25% for an existing restaurant. Intensive training addresses all aspects of operating a McDonald’s restaurant. While McDonald’s does not offer financing, McDonald’s Owner/Operators have access to the company’s established lender relationships with some of the lowest lending rates in the industry.
That We Like
McDonald’s provides hands on training and the materials you need to become a success. With world-class training, world-class service, world-class support, and unsurpassed name recognition, McDonald’s is a sure winner for franchisees seeking a serious “all-in” franchising opportunity with guaranteed community presence and predictable profits. All this and they still serve a shake so thick you need a spoon.
- Special Incentive Programs -MinorityFran Participant
- Recession Proof Market – McDonald’s serves more than 27 million individuals daily according to 2007 statistics.
- World Class Training – McDonald’s is recognized as a premier franchising company around the world. Training is required prior to becoming an owner/operator.
- Cost – McDonald’s does not provide financing or assistance other than the special incentives for minorities.
- No Absenteeism – McDonald’s franchises are open only to individuals who are involved with the day-to-day operations of the restaurants-no absenteeism allowed.
McDonald’s Franchise Information
Business Established: 1955 Franchising Since: 1955 Total Investment: $511,000 to $1,000,500