Founded in San Bernardino, California, United States, in 1940, McDonald’s is an American fast-food company prominent in the restaurant industry. McDonald’s sets an example in good leadership by reducing waste, using humane sourcing and nutritional ingredients.
Furthermore, the company collaborates with investors to give customers a memorable experience. Considering its solid operational revenue, brand strength, and superior credit, purchasing a McDonald’s franchise is a profitable investment.
It’s necessary to invest in a net lease fast food property by buying a McDonald’s for sale. Interestingly, McDonald’s doesn’t leave franchisees clueless on how to run the restaurant but provides extensive educational training at Hamburger University for all franchise applicants to inspire their commitment level to promote business growth.
That way, McDonald’s franchise property investors keep enjoying McDonald’s as a credit worthy and quality tenant.
This article explains the reasons to invest in the McDonald franchise for sale. We’ll also answer some frequently asked questions about the McDonald’s triple net investment.
Reasons to Invest in McDonald
1. It’s Recession-Resistant
During the recession, industry growth tends to decline, especially amid competition. However, in slow economic growth periods, McDonald’s tends to outperform.
2. It’s Reasonably Priced
McDonald’s provides a top-notch risk/reward profile in addition to capital allocation catalyst, menu, and unique technology.
3. It’s Delivery Business is Growing
We envision a positive impact on ticket trends and comparable traffic since delivery is a more meaningful contributor, giving McDonald’s room to explore in-house delivery service; this reduces McDonald’s reliance on third-party aggregators.
4. McDonald is Unlocking New Restaurant Formats
Technological advancement permits McDonald to change its real estate strategy, unlocking the potential for delivery hub locations or small-format mobile pickup.
5. It Invests in Itself
McDonald’s management has revealed their new capital allocation plans. We expect an increase in dividend per share growth to satisfy income-oriented investors.
McDonald’s offers franchise applicants an extensive training program at Hamburger University. This training empowers their franchisee in every aspect of a McDonald’s restaurant business operation.
About McDonald Franchise
Since 1955, McDonald’s has been franchising, and McDonald’s franchisees have played a significant role in the franchise system’s success.
With over 36,000 restaurants in over 100 countries, McDonald’s is a global foodservice retailer with several franchises.
There are two options to buy a franchise according to McDonald’s and join the McDonald system. The most common method to buy a McDonald’s for sale is by purchasing an existing restaurant.
There are several ways to buy a current restaurant; the first is to buy a company-owned restaurant as a turnkey franchise. That is, a McDonald’s restaurant run directly by McDonald’s corporate.
McDonald’s intends to sell off 21 percent of its total restaurants, about 7,000 restaurants in over three years as franchises. Also, another way to buy an already existing restaurant is to purchase an existing McDonald’s franchise for sale as the property owner.
Besides purchasing an existing restaurant, the second less commonly used method to buy a franchise, according to McDonald, is getting licensing rights for a new McDonald’s restaurant. This method isn’t widely used because most locations are already developed.
Building a new restaurant requires buying land, building, and letting the franchisee lease the property using the twenty-year term McDonald franchise agreement.
During the franchise term, McDonald’s collects rent and service fees from franchisees. A service fee is a monthly fee dependent on the sales performance of the restaurant. Since McDonald owns the property and acts as the landlord, it also charges a monthly base rent, a fraction of monthly sales.
Frequently Asked Questions
1. How much is a McDonald’s franchise?
$1,008,000 to $2,214,080 is the total investment required to start operating the McDonald’s franchise. The amount includes a $45,000 initial franchise fee that’s given to the franchisor.
The minimum price for a down payment changes since there’s a variation in the total costs between restaurants.
2. How can I find McDonald’s for sale in an area?
New and exciting McDonald’s sites are either offered to existing franchisees or franchisee applicants who’ve concluded the extensive training program. McDonald’s doesn’t include franchise territories or work with applicants seeking a specific restaurant location.
3. Can I select a location and build a McDonald’s restaurant?
McDonald’s doesn’t support developing new restaurant locations to issue the franchise to an individual. The development team oversees site selection and building while the regional officers are in charge of franchising the new sites.
4. Does McDonald’s permit investing with a partner?
No, McDonald’s doesn’t permit partnership investment, including sibling or family partnership. Only an individual who has concluded the extensive training is given a franchise.
There could be exceptions by the franchising officer at McDonald’s sole discretion. However, you can employ your family members in the business.
5. How much does a McDonald’s franchise make?
A McDonald’s franchise profitability depends on factors such as financing terms, operation and occupancy cost, and your ability to run the business effectively.
6. What are the requirements to run a McDonald’s franchise?
A minimum non-borrowed personal resource of $500,000 is a vital requirement to open a McDonald’s franchise.
Other requirements include significant business experience, capacity to grow, draw and execute a business plan, good management skills, good credit history, exceptional customer experience, and willingness to undergo training.
According to McDonald, you have to purchase a franchise to join the system. The two methods to buy a franchise are: purchasing an existing restaurant and getting licensing rights for a new McDonald’s restaurant.
The most commonly used method for investing in a McDonald’s for sale in Florida and other locations in the country is by purchasing a current restaurant property.
McDonald’s provides a collaborative business environment, personal growth, and business knowledge from company experts and training.
The training enables franchise owners to succeed in the restaurant industry, and the McDonald’s support system supplies franchisees with resources that make running the business successful. That way, McDonalds franchises keep succeeding and making monthly payments to the property owner depending on their triple net lease terms.
Suppose you’d wish to invest in a McDonalds triple net property for sale, contact Buy NNN Properties today to get started.