Either way, you need to fulfill certain financial requirements to be a McDonald's franchisee.
(1) NEW RESTAURANTS
The costs for starting an entirely new McDonald's restaurant can be anything between RM2.0 million to RM4.5 million. The costs also depend on the restaurant size and type, its location, style of décor and landscaping.
Initial Costs
| (A) | USD 22,500 Franchise fee paid upon or prior to the commencement of the franchise. |
| (B) | RM50,000 Interest-free security deposit for the faithful performance of the franchise, refundable upon the expiration of the franchise. |
| (C) | RM200,000 - RM250,000 Pre-opening expenses - Staff training and salaries, stock trading, living expenses while training and other normal start-up costs. |
| (D) | RM1.7 million - RM2.5 million Approximate cost of kitchen equipment, signage, seating, decor and landscaping paid to individual suppliers. |
| (E) | RM800,000 to RM3 million [depending on store type (Drive Thru, Mall, Oil Alliance or Shop Front)] Approximate cost of all civil works, ventilation system and renovations to the premises paid to individual contractors Paid by Golden Arches Restaurants Sdn Bhd. |
| (F) | Other Miscellaneous Costs Stamp duty (paid to the government) is assessed on necessary documentation and is paid by the franchisee in addition to the working capital required. Legal fees are paid by the franchisee to cover the preparation of the franchise documentation |
Ongoing Fees (Monthly)
Royalty Fee
A Royalty Fee, which is a system fee, is based on a percentage of the restaurant's gross sales, which is currently at 5%.
Rental
Depending on store type, location and performance – may vary between 13% to 20%
Marketing Contribution
Currently at 5% of the restaurant's gross sales.
2) EXISTING RESTAURANTS
For an existing McDonald’s restaurant you will usually buy it over based on the restaurant's market value. In addition, the franchise fee and security deposit aforementioned will also be payable.
Note: All matters mentioned in relation to an individual making an application and qualifying for a McDonald's franchise also apply to the situation where it is proposed that an existing restaurant business is purchased.
FURTHER NOTES:
| 1. | The costs stated above are only estimates and may change without prior notice. |
| 2. | As a general guide, no less than 30% of the initial costs must be funded from non-borrowed personal resources. |
| 3. | Term of Franchise: 10 years or length of lease of premises. |