Starting a food business with a well-established brand is an excellent option in India. Because the craze of Fast Food is increasing day by day and most people kick-start their first business in the food-selling line. In this blog, we will tell you about the McDonalds Franchise. This is a leading fast-food chain company in India and the demand for McDonald’s items is increasing every time. Now you can become a partner of McDonald’s with investment in the Franchise Model. This blog is designed to share details like McDonald’s Franchise Investment Cost, Profit Margin, Requirements, ROI, and Application process, Let’s read this post to the end carefully.
About McDonald’s Franchise
Before investing in the McDonald’s Franchise business model, you must have Good Knowledge about brands and their history. Well, in this part you can check out the history of this company. So in the year 1940, there are two brothers Maurice McDonald and Richard McDonald started a business. Their business will be popular with the name of McDonald’s. The origins of the business may be found in its time as a grill restaurant. Despite this, Maurice and Richard began offering franchises for the company in 1955, coinciding with the positive feedback they got and their subsequent success. McDonald’s currently operates franchises in more than 120 countries worldwide as a direct result of their efforts.
McDonald’s started as only a grill restaurant, but over time, it has added a wide range of fast food alternatives to its menu, such as burgers, fries, wraps, ice cream, and soda beverages. In the current time, McDonald’s has become a world-famous and well-known fast-food franchise with locations all over the world. Everyone is aware of its brand and logo. It is found in more than 100 nations worldwide. With more than 38,000 locations now, McDonald’s serves 7 crore consumers every day. These numbers are significant enough to show that McDonald’s ranks highly among the options available to franchisees wishing to open their own fast-food or burger establishments in India.
Mcdonald’s Company Profile & Franchise Overview
| Blog Topic | McDonald’s Franchise Cost in India |
| Industry | Fast Food Chain |
| Company Type | Private |
| Established Year | 1940 |
| Founded by | Richard and Maurice McDonald |
| Franchise Locations | 500+ |
| Official Website | https://mcdindia.com/ |
Mcdonald’s Franchise Cost in India
Let’s examine the details of how much investment you need to start a McDonald’s Franchise in India. The one thing I want to tell you is that if you have a friendly budget of Rs 1 to 2 crore then you can with this option. The table below will help you to check out the McDonald’s franchise in India cost:-
| Essentials | Cost (INR) |
| McDonald’s Franchise Fee | 25 lakh rupees |
| Royalty Fees | 5 to 10% (Negotiable) |
| Furniture Cost | 20 lakh rupees |
| Civil Work Cost | 10 Lakh |
| Kitchen Utensils, Oven, Baker, Deep Freezers, Fryers | 40 Lakh |
| Training, Transportation, and Licencing | 20 lakh rupees |
| Seating Table chairs & portable furniture | 8 lakh rupees |
| Interior | 10 lakh rupees |
| Total Investment | 1.5 to 2 crore rupees |
Mcdonald’s Franchise Profit Margin In India
Using an example, we will examine the franchise profit margin for McDonald’s. All of the costs will be subtracted from the gross sales. Sales of 15,00,000 Rupees, or 40,000 Rupees each day, are what we are assuming. Let’s check out the given mentioned table only:-
| Particulars | Amount (₹) |
| Gross Sales | 15, 00,000 Rupees |
| Food Cost @35% | (4,50,000) Rupees |
| Rent | (1,20,000) Rupees |
| Electricity and Water Supply | (30,000) Rupees |
| Salary of Workers and their Expenses | (1,00,000) Rupees |
| Aggregator Commission (Zomato, Swiggy) | (40,000) Rupees |
| Royalty Fee @4%+GST Advertisement Fee @4%+GST |
(1,00,000) Rupees |
| Transport | (20,000) Rupees |
| Other expenses (Software, Maintenance, and Misc) |
(50,000) Rupees |
| Net Profit | 3,30,000 Rupees |
| Profit – Margin | 15 to 20% |
How to Start a McDonald’s Franchise in India?
According to the most recent information available on McDonald’s India’s official website, the business has declared that it is currently not taking new franchise applications in India. But they accepting the application soon and thousands of people are waiting for this moment. So you have to only visit the official website of McDonald’s and read out the important guidelines first. Then submit your application with the required documents. You can download the application form from the McDonald’s India website.
Besides, you’d have to provide details such as your business experience, financial stability, and location preferences. McDonald’s India will verify your eligibility by running a background check after receiving your application. Your financial and legal background will be examined. And an in-person interview.
NOTE:- McDonald’s is the world’s largest franchise network, with an incredible $89 billion in global sales. Despite increasing competition, it has held this position every year since the rankings were first released in 2000. To put this size into context, it’s bigger than the combined size of KFC, Subway, and Burger King.
FAQs related to McDonald’s Franchise
Q.1 Is McDonald’s franchise profitable in India?
- Yes, the McDonald’s franchise is profitable in the Food Industry of India. Its reputation, branding, Varieties of the menu, Quality of food & services attract customers and retain them for a period.
Q.2 What is the ROI time of a McDonald’s Franchise?
- 2 to 3 years has official ROI time as per the FDD.
Q.3 How much does McDonald’s Franchise Cost in India?
- The McDonald’s (MacD) Franchise in India will cost you around 1.5 crore rupees. However, you will need to have nearly 2.5 crore rupees in your cash/bank balance to maintain the store.