McDonald’s in Australia

In Australia, McDonald’s operates over 1,030 restaurants and is by far the most successful franchise company in Australia.

Benefits of the McDonald’s System

Being a McDonald’s franchisee comes with a range of benefits. When you join, you’re not just paying for a brand; you’re getting a whole support system. This includes experts in areas like operations, supply chain, marketing, finances, training, IT, equipment, and human resources. If you ever have a question, there’s always someone available to help.

Community Involvement

Being a part of the community is central to what McDonald’s stands for. As a franchisee, you’ll find purpose in supporting and contributing to your local area. The restaurant chain is known for being a reliable presence in communities, and this involvement is both satisfying and essential to the business. The community supports McDonald’s, and in return, they support the community.

Franchisee Training Program

To become a successful franchisee, it’s essential to learn everything McDonald’s has perfected over more than 50 years. That’s why the Registered Applicant Training Program is a minimum of 9 months full-time and unpaid. During this time, you’ll learn all the systems and every role in the restaurant, from cleaning to management. By the end of the program, you’ll have the skills needed to run a restaurant successfully. The training is intensive and requires financial preparation, as it is unpaid.

McDonald’s invests heavily in this training program to ensure you’re fully prepared to take on the responsibility of running a restaurant.

Support System Benefits

McDonald’s has a well-established system that involves collaboration between the company, suppliers, and franchisees, often referred to as the “three-legged stool.” This collaboration helps grow the business by providing support and sharing best practices. Franchisees benefit from access to resources in HR, marketing, IT, legal, and more.

Giving Back to the Community

McDonald’s believes in contributing to the communities where it operates. Franchisees and restaurant managers are encouraged to support local community groups and charities. This flexibility allows franchisees to give back in ways that are meaningful to them and their communities. This philosophy of community involvement started with  founder, Ray Kroc, and continues to be a core value.

Who is Suited to be a McDonald’s Franchisee?

The right person for a  franchise should have:

• Experience in recruiting, developing, and leading diverse teams in a fast-paced environment
• Strong financial decision-making skills to grow the business profitably
• A passion for customer service
• Resilience and the ability to lead and adapt to change
• A strong work ethic
• The ability to create and implement business plans with both short and long-term goals
• Experience working in a standardized, operations-focused environment
• Personal accountability for the success of their business

McDonald’s Financial Facts – Franchise Overview

• Number of Australian Stores: Over 1,030
• Required Net Worth: $464,000
• Required Liquid Cash: $500,000
• Minimum Investment: $460,000
• Maximum Investment: Over $2,300,000
• Standard Franchise Term: 10 years

Can I Start a McDonald’s Franchise?

You can start a McDonald’s franchise if you have at least $500,000 in liquid cash and a net worth of $464,000. You’ll also need 25% to 40% of the start-up costs in unborrowed funds. Most people buy an existing franchise, however new locations can also be opened depending on the area’s fast food market and sales potential. Be prepared for a significant investment and know that you’ll need to be actively involved in running the business, especially in the early years.

If you have the financial resources and are ready to commit time and effort, a McDonald’s franchise could be a good fit for you.

McDonald’s hits 50th anniversary in Australia

How Much Does a McDonald’s Franchise Cost?

Starting a McDonald’s franchise can cost up to $2,300,000 or more. After that, you’ll need to send up to 82% of your franchise’s revenue back to Head Office in the form of product purchases, fees, rent, and other costs. If you borrow money to start your franchise, the debt must be repaid within seven years. The initial franchise fee is $45,000.

You’ll also need to pay ongoing fees, including:

• Royalty Fee: 4% of gross revenues
• Marketing Fee: 4% of gross revenues

Are McDonald’s Franchises Profitable?

Yes, they are. In 2020, the average  location made about $2,900,000 in sales, with a profit margin of around 10%, resulting in an average annual profit of $290,000. With an initial investment of around $1.7 million, it typically takes about 8.5 years to recover your investment. So, McDonald’s franchises are generally profitable.

McDonald’s upgrades existing restaurants.