Mcdonalds

[Gaulkin]

Anyone ever thought of becoming a franchise owner/operator for Mcdonalds?

[DebtFreeMe]

I did look into it a bit, not just McDonalds but others also.

With McDonalds my understanding was that the profit margins for the owner are quite low, but then again you get huge name recognition and a proven system backed up with all the help you could ever want.

Also, I believe that although you purchase the land yourself, you have to give it too the McDonalds Corporation. They are actually one of the biggest owners of commercial real estate in the world, at least by value. I heard that on a CNBC documentary about the company.

So, you basically give up high returns for the near guarantee of success over time.

[Gaulkin]

I read online that the average owner makes $240,000 a year on each Mcdonalds franchise he has. To me that is a very good reward for very low risk. $300,000 down is the cost to buy a franchise so break even is a little more then a year.

[Grandmarnier]

Break even on the down payment only. What is the total amount to buy a Mcdonalds? I think for a Jack in the Box, its $2M

[Gaulkin]

900-1.5 million is what they are telling me. They also do not build new ones, they prefer you buy an existing Mcdonalds that is already established and profitable. One thing im not thrilled about Mcdonalds is that you have to be there everyday and cannot be absent from managing the franchise.

[Fanatik]

I think the managerial portion would drive me away from the idea. Although, I can assume that not every owner is a manager. I remember going to McD's to get a grease-burger, and the owners were framed in a picture on the wall, but they were old and gray, and I wouldnt imagine them being an in-house manager.

[Grandmarnier]

Well, Mcdonalds is smart. They want people to actually work for their investment. You cant expect to plop down some money and just expect the checks to come in. If that were the case, then all the rich people will get richer cause they'll buy up all the McDonalds, right?

By saying, "Yes, i'll invest my money" and "Yes, I'll manage the restaurant", youre telling MCDs that youre serious.

[Gaulkin]

Yes that is how they want there owners to handle business, doesn't mean i have to like it.

[Alana360]

I'm curious...if you don't like the dynamics of what is involved to own a McD's, then why are you considering it? Especially with such a large investment out of your own pocket. There are millions of people that have jobs they loathe and go to every day, and they do it out of necessity, not by choice. This would be a choice for you. Sounds like you'd be better off finding a venture that you'd enjoy more, and would get more out of. Just my opinion.