As a guide, the cost of an average restaurant is £200,000. You will need to provide at least 25% of the value as unencumbered funds, the remaining 75% can be funded through a bank loan with favourable funding terms.
There's also a one-off franchise fee of £30,000 and a training deposit of £5,000 which will be refunded when you complete your training.
There are also ongoing fees. These include:
- Monthly rent on the premises, based on sales and profitability (usually about 12%)
- Service Fee for use of the McDonald's system - 5% of sales
- Contribution to national marketing spend, currently 4.5% of sales
And the returns?
Cashflow is around £70,000 to £98,000 per year but this isn't guaranteed: it could be more, it could be less. This is before debt repayment. The average cash return on investment is currently around 10%.
