Main points
- The cost of a McDonald's franchise in the US requires at least $750,000 in own funds, and a 20-year license fee will cost the entrepreneur $45,000.
- In Ukraine, the company manages all restaurants directly; due to the war, the issue of franchising is not yet being considered.
How much does it cost to open a McDonald's franchise / Channel 24 Collage
McDonald's is the world leader in quick-service restaurants, with over 41,000 locations in more than 120 countries. Some of them operate under a franchise model that allows entrepreneurs to open restaurants under a well-known brand under certain conditions.
How much does a McDonald's franchise cost?
Since the total cost of opening a restaurant varies depending on location and format, the minimum initial investment may also vary. Details are provided on the company's website.
For example, in the US, a company usually requires at least $750,000 to be considered for a franchise – in the form of own funds that are not borrowed.
In particular, the entrepreneur must pay a licensing fee of $45,000 for the right to work under the brand for 20 years.
An additional $100,000 will be needed for the restaurant's working capital. In addition to the initial fee, the franchisee also pays a monthly royalty, which is 4-5% of the revenue.
Is it possible to open a franchise in Ukraine?
Earlier, in an interview with RAU, McDonald's local development director Vitaliy Stefurak said that the Ukrainian market is unique, because the company manages all restaurants directly.
However, the lack of a franchise model limits the network's development potential, in particular the speed of opening new establishments.
Whether McDonald's will introduce franchising in Ukraine is more a matter of time, because franchising is our company's global business model. However, while the war is ongoing, it is inappropriate to talk about it,
– the director explained.
Other news about McDonald's in Ukraine:
-
Since April 15, restaurants have launched the “Robbery of the World Menu” campaign, so Ukrainians will also be able to taste a variety of dishes that have already become popular in other countries.
-
As a reminder, after the start of the full-scale invasion in 2022, McDonald's closed its doors to visitors almost throughout Ukraine. However, on March 27, the restaurant finally reopened in Mykolaiv.