How the business works

From May 2018 to June 2019, 80% of all McDonald’s UK franchised restaurants had sales between £1,500k and £4,300k.

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

For 80% of restaurants franchised in 2018 the cost of purchasing the franchise rights and equipment was between £350k and £1,85 million* and this was priced on profitability over a 10 year period.

*These prices are based on buying the right to run a McDonald’s company-owned restaurant. The price may vary if you purchase the right to run a restaurant from one of our 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

The monthly fees payable by 80% of restaurants franchised between May 2018 and June 2019 ranged between 12.25% and 21% of that restaurant’s net sales. Typically this rent is fixed for 20 years on the initial term. Rent is calculated over a 10 year period factoring in projected sales and projected profitability.

There is an additional monthly service fee 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

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

Return on Investment is modelled such that a Franchisee has the potential to generate 20% - 25%* over a 10 year 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.