McDonald's - Still A Reliable Franchise OpportunityMcDonald's touts itself as always being an active franchising company. And rightfully so. With over 2,400 owner/operators in the United States alone, overseeing over 13,000 restaurants, McDonald's has relied on its franchisees to play a major role in their success. McDonald's committed approach seeks highly qualified business people to join their "system". If you were to decide to buy Mcdonald franchise you will have a lot of work ahead of you but also a tremendous opportunity too. Preferred applicants are individuals with "significant business experience who have successfully owned or managed multiple business units or have led multiple departments and who have significant financial resources." Buying a McDonald's Franchise Usually an upfront payment is preferred when you purchase a new restaurant (40% of the total cost) or an existing restaurant (25% of the total cost). "The down payment must come from non-borrowed personal resources, which include cash on hand; securities, bonds, and debentures; vested profit sharing (net of taxes); and business or real estate equity, exclusive of your personal residence." No two restaurants are exactly the same so total cost will also vary depending on location and age of the restaurant. Generally, corporate McDonald's requires a minimum of $300,000 of non-borrowed personal resources to consider you for a franchise. Individuals with additional funds may be better prepared for additional or multi-restaurant opportunities, though financing is available in some cases. Though the buyer pays cash as his downpayment, the remaining balance may be financed for up to seven years. McDonald's itself does not provide financing but enjoys the benefits of established relationships with reliable lending institutions. These same national lending companies enjoy the lowest lending rates in the industry. There is also a required monthly base rent or percentage rent also a percentage of monthly sales. |