Cost, returns, ongoing investment.
Find out what to expect.

If you’re thinking of becoming a Franchisee, here’s everything you need to know.

   

Typical* Annual Sales £2.0 million - £5.8 million

From January to December 2023, 80% of all McDonald’s UK franchised restaurants had sales between £2.0m and 5.8m.

To invest in a McDonald’s Franchise, the minimum financial requirement is 25% of the total investment in unencumbered funds.

The remaining 75% investment can be funded by a bank and Franchisees may wish to use banks with which McDonald’s has a relationship since these provide very competitive rates.

Those interested in becoming a Franchisee will need to invest circa. £125k in unencumbered funds

Of restaurants franchised in 2023, the cost of purchasing the franchise rights and equipment was between £500k and £1.85 million*. This was valued on profitability over a ten year period using a projected future cash flow.

The opportunity to own and operate a McDonald’s restaurant may come from a direct purchase from McDonald's or via one of our existing Franchisees.

*Typical payment needed to obtain the right to purchase the franchise rights and equipment for a first restaurant. In certain circumstances, McDonald’s may be able to offer alternative financial arrangements.

Typical Rent, Advertising and Royalty

The monthly rent payable by 80% of restaurants franchised between January 2023 and December 2023 ranged between 8% and 18% of that restaurant’s net sales. Typically, this rent is fixed for 20 years on the initial term. Rent is calculated over a ten year period factoring in projected sales and profitability.

There is an additional monthly royalty of 5% of the net sales for the use of the McDonald's system as well as a contribution to the marketing fund which is currently set at 4.3% of net sales.

Typical Annual Cash Flow after first year: £120k-£400k

Cash flow is the money left in your business before you have taken a personal draw, and paid any loans or tax payments that may be outstanding.

Typical return on investment (ROI) over 20 Years 20%-25%

ROI is modelled such that a Franchisee may have the potential to generate 20% - 25%* annually, over their term. Note that this doesn't take account of any future investments you will make into your business during the 20-year term.

*The ROI range may vary based on future business performance and how individual restaurants are operated.

Banking Support

McDonald’s has long-standing relationships with well-established banks, who can offer competitive rates and support to Franchisees.

Ready to take the next step?

Make sure you read our step-by-step guide to the Franchisee application process.

Explore more

Our Support

How McDonald’s supports Franchisees.

FAQs

Your most common questions answered.

Our Franchising Events

Learn even more at our next event.

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