McDonald is perhaps the biggest name in the fast food industry. If you are looking at a business for sale in Tampa, you might want to consider purchasing a McDonalds Franchise. However, there are a lot of questions that need to be asked before you buy. How much does it cost to open a Mcdonalds? What requirements need to be met? And what are the start up costs of owning a McDonald’s? Rockrose Realty answers all these questions for you. If you want to know more about this monumental franchise, contact one of our Florida offices.
- How does the McDonald’s franchise system work?
Franchises play a major role in this food franchises success. Since 1955, they have been leasing off properties and have expanded into 100 countries, with a total of over 35,000 restaurants. Thirteen thousand of these are US-houses franchises, seventeen thousand foreign franchises, and only six thousand are company owned.
If you are considering buying into this conglomerate, you will most likely be getting a franchised owned portion of the company. Franchisees typically enter the system by purchasing an existing restaurant (either from McDonalds itself or an existing franchisee). Only a fraction of owners enter the system by purchasing a new restaurant.
- What are the start-up costs of a McDonald’s Franchise?
The initial down payment for a new McDonalds is forty percent of the total cost, or twenty five percent of the total cost for an existing location. It must come from non-borrowed sources. The total cost varies from each location, but the standard down payment is near 500,000 U.S. dollars. The initial franchise fee is 45,000 U.S. dollars. In 2016, the initial investment varied from $1,003,000 to $2,228,000. You can contact us at Rockrose Realty to find out the specific numbers of a McDonald’s business for sale in Tampa.
McDonalds also encourages those who have extra funds to invest in multiple restaurants. However, like most franchises, it is the franchisees responsibility to take on the costs of developing the restaurant.
- What are the requirements to own a McDonald’s?
McDonalds expects a lot from its franchisees. You must possess significant business experience, particularly in owning a restaurant or a business with various departments. They expect your franchise to grow rapidly, and they typically reward those who excel. Naturally, McDonalds expects you to have a business plan set for your location, including a strategic training program for new hires. It is crucial that your management your finances well and you have the documents to prove your previous financial history. Good management skills are a necessary requirement, as well as good customer service skills, and a good credit history.
- Are there any ongoing fees?
There is a monthly service fee based off of the restaurant’s gross sales. This usually a current service fee of 4% of your monthly sales. The base rent for a McDonalds location is also based upon a percentage of the overall monthly sales.
If you are interested in hearing if there is a McDonalds business for sale in Tampa, Florida, contact Rockrose Realty and see how you can get your hands on a McDonalds Franchise.