One of the most popular fast-food franchises in the world is McDonald Corporation- The name which is easy to associate with, and it was in 1940 that it started operations as a single restaurant in San Bernardino, California. The innovation was the brainchild of Richard and Maurice McDonald. They introduced a Speedee service system to produce their meals, and that is what the world came to know as fast food. They were joined by Ray Kroc in 1954 and continued till 1961 until Kroc ultimately brought out the venture in 1961. Today the company is headquartered in Chicago, and it is undoubtedly a premier fast-food global brand. It is no wonder that there are multiple inquiries for a McDonald’s franchise cost.
Cost of a McDonald Franchise
The company has long believed in the franchisee business expansion model, and Ray Kroc, the first CEO of the corporation, joined the organization as a franchisee agent. They are offering franchises worldwide, and you could make queries about the McDonald’s franchise cost in India. These days the net offers excellent information and one can download a McDonald franchise application from India. The net should also offer information about McDonald’s franchise contact number India, and you can call up. However, before you download the form, you must have a proper understanding of the capital expenditure necessary for this business venture. Here are some of the details
- The McDonald’s franchise cost in India in rupees 2021 is varied, and it could range from Rs 6.6 Cr-Rs 14 Cr. There is also a need for liquidity capital of 5 crores.
- There is undoubtedly a franchise fee to pay, and it stands at 30 lakhs.
There is another cost to incur, and it is in the form of a service fee, which is 4% of the total sales
Requirements of a McDonald Franchise
There is undoubtedly a need to arrange for the finances, and you can also check out the McDonald’s franchise cost in India quora for more information. However, before you start operations, there is a need to go through the FDD. The term stands for Franchise Disclosure Document, and it is lengthy. It is a 375-page document, which anyone eager to set up a McDonald’s franchise in India must go through. It is a document, which gives insights into the rights and responsibilities of a McDonald’s franchise proprietor
Some other requirements will be necessary.
- In all franchise systems, the applicant has to identify the location for the business location but not here. However, it is different for McDonald’s because they acquire the real estate and construct it for you.
- The applicant for a McDonald franchise in India must have significant business experience. It is preferred that the applicant has the experience of managing multiple businesses or several departments. There is a need to display good management skills.
- The applicant must have the ability to develop a business plan and execute it.
- The person applying must also have the ability to manage finances well.
- The applicant may also have to undergo a training program.
Contact persons for the franchisee application in India
There is undoubtedly a need to place an application for a franchise of McDonald’s in India, and we provide you an update on the individuals you must contact. If you plan to set up a McDonald franchise in the southern and western parts of the country, the person to contact is Amit Jatia. He is the Vice-Chairman, Hardcastle Restaurants Pvt. Ltd. Aspiring entrepreneur’s eager to set up a franchise of McDonald’s in the north and eastern India must contact Vikram Bakshi of Connaught Plaza Restaurants Private Limited. We have discussed how to get a McDonald franchise in India and now shift the discussion to the prospective profanity expected from the venture.
What is the average profit of McDonald’s Franchise?
Before we discuss the average profit, a key area you would desire to update is the time limit taken for break even. This is undoubtedly a reputed brand, and just the name will help franchisee owners to break even quicker. However, from a conservative estimate, we would like to state that you should achieve the break-even point anywhere in the range of two to three years.
The average profit for setting up a McDonald franchise should be good primarily because of two factors. Firstly it is a renowned brand, and this will make sure that you spend very little on advertisements for the business. The second aspect is that food chains are today a thriving business in India. This is an era of working couples, and so with abundant money at disposal, people are placing more orders for fast food. In such a scenario, your business should thrive.
It would be best if you reached break-even quicker.
There has been a talk about a scenario of achieving break-even in two to three years. However, we have specially mentioned that it is a conservative estimate, and entrepreneurs who have opened a franchise of McDonald’s in India have better experiences. They speak of a scenario where people have achieved break-even and generate surplus cash in six months. Once you get into the details of McDonald’s franchise profit margin in India, the fine print clearly states why entrepreneurs are achieving profitability a lot quicker. They are only sharing 20% with the parent as a part of the royalty fee.
Hence, after a careful assessment of the details, you are perhaps on the lookout for a straight answer on whether one should invest the money or not. Your fear could be that everything looks rosy, but thorns might emerge once you decide to set up shop. The suggestion would be that if you can arrange for the cash, one must go ahead. There might be problems, and that is common for any business. However, here you get a global brand by your side to solve it. You get the necessary training to run a franchisee outlet successfully. It is with excellent support from the parent that your business venture should be a success.