Here's What It Costs To Open A McDonald's Restaurant
The average McDonald's restaurant generates $2.5 million in sales annually, making it the second highest-grossing chain in the US by sales per unit behind Chick-fil-A, according to QSR Magazine.But in order to open a single restaurant, the company requires that potential franchisees have liquid assets of at least $750,000.
Franchisees must pay 40% of the startup costs with cash and other non-borrowed resources, while the rest can be financed.In addition to those costs, McDonald's charges a $45,000 franchisee fee and an ongoing monthly service fee equal to 4% of gross sales. Franchisees must also pay rent to the company, which is a percentage of monthly sales.
McDonald's franchisee startup costs are similar to those of KFC, Wendy's, and Taco Bell.
Subway, by comparison, is far less expensive, costing between $116,000 and $262,850, according to the company. Subway also requires minimum liquid assets of only $30,000 to $90,000. Reuters
- PM's visit to vaccine centres gets 'praise' from Congress
- Pollution, pandemic and pre-term birth
- Serum Institute of India threatens to seek ₹100 crore in damages from Chennai volunteer
- PM to interact with more teams of Covid-19 vaccine developers
- UP to have cold chain space for 1.23L litres of vaccine