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Unbeatable brand name, food that sells itself, and all marketing is handled on a national level so individual owners do not have to worry about that. I have rarely heard of unprofitable McDonald's - the average take home net profit per year for a franchise owner is $200,000. I wouldn't mind even working in the store itself as day manager, because it's different when it's your property and your profits.
The problem is you need at least $500,000 of NON-borrowed funds, and up to $1.4 million in certain high traffic locations.
Conversely, I could afford to buy a Chik-fil-A franchise right now for $5000 (that's really all you need), but I would never meet their ridiculous (read: religious, conservative) owner/operator requirements.
Unbeatable brand name, food that sells itself, and all marketing is handled on a national level so individual owners do not have to worry about that. I have rarely heard of unprofitable McDonald's - the average take home net profit per year for a franchise owner is $200,000. I wouldn't mind even working in the store itself as day manager, because it's different when it's your property and your profits.
The problem is you need at least $500,000 of NON-borrowed funds, and up to $1.4 million in certain high traffic locations.
Conversely, I could afford to buy a Chik-fil-A franchise right now for $5000 (that's really all you need), but I would never meet their ridiculous (read: religious, conservative) owner/operator requirements.
I would be really really careful with the numbers you are citing. The market is saturated with McDonalds and there was a wave of store closings in the last 8 years or so.
The one by my house went out of business and then re-opened under new guidance.
There are 10 within 5miles of my house right now. 29 within 10miles.
I would be really really careful with the numbers you are citing. The market is saturated with McDonalds and there was a wave of store closings in the last 8 years or so.
The one by my house went out of business and then re-opened under new guidance.
There are 10 within 5miles of my house right now. 29 within 10miles.
Of all things I happened to be reading some stuff about McD's in Russia yesterday, which over there they have the high sales per store of any country. Initially they were looking at big store expansion, but thought it better to renovate older stores and improve current locations rather than putting on every corner. I think they've started to do that in the USA as well.
I'd rather buy a Chik-fil-A, even though I'm not a fundy. All it means is that I don't have to be open on Sundays. They finance my start-up costs and I net, on average, $100,000 a year per store. And that's pretty damned great.
You have to have more than money to open a McDonald's franchise, you have to have been trained by, and worked for, a McDonald's for a minimum of a year, usually much longer.
Show up with a million in cash and you won't get a franchise unless you have paid your hefty dues by working from a broom position to manager, and everything in between...
They don't give those franchises to just anybody with a pocket full of money. One way they insure the franchises are successful is to make sure the owner knows McDonald's operation inside and out.
So while you're saving up your half mill, better get a job at McDonalds... Perhaps in ten years or so, you will be a success...!!
... net profit per year for a franchise owner is $200,000. ...
Really??
I think the statistics include MANY MANY MANY folks that own MULTIPLE franchises, and the sum of all the stores accounts for that $200K number.
A little deeper digging would show that the operating margins for the McDonalds corporation relies very much on the large amount of cash franchisees plow back into the firm not just for royalties and supplies but rent.
Labor costs are pretty significant expense to any restaurant, as are things like utilities and needed maintenance, to say nothing of the substantial costs associated with revamping locations. Further, while you might think it seems like it would be "fun" or at least tolerable to "work" inside a McD, the efforts needed to keep an adequate number of people frying the potatoes, grilling the burgers, filling out orders, making change and cleaning up day-in-and-day-out explains why few McD locations are staffed by family...
There are so many things I'd probably do if you threw 500k my way instead of opening a fast food restaurant. Like hire Brock Lesnar to fight 10 midgets at once while The Jesus Lizard played a set in the background.
There are so many things I'd probably do if you threw 500k my way instead of opening a fast food restaurant. Like hire Brock Lesnar to fight 10 midgets at once while The Jesus Lizard played a set in the background.
Sorry for the confusion... the 'Lion Mutilates 42 Midgets in Cambodian Ring-Fight' article is fake (http://lionvs40midgets.uk-directory.com/lionvsmidgets.htm - broken link)
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Hmmm...
