How to open a McDonalds Franchise in India?

Gaurav Sangwani, September 2016

Franchising your business is a demonstrated course to quick growth. Be that as it may, turning into a franchisor is not a programmed ticket to achievement, particularly in this testing economy. Talk about an easy win! McDonald’s restaurants are among the most identifiable brands in the whole world. The McDonald’s Golden Arches logo has ended up a standout amongst the most omnipresent marketing symbol ever. Since 1940, when McDonald’s Corporation initially opened as a grill restaurant, then a hamburger stand, it has developed into the biggest chain of hamburger fast-food restaurants on the planet.

McDonald’s has been a franchising organization since 1955, and has depended on its franchisees to assume a noteworthy part in the framework’s success.

Authorities Involved

McDonalds franchise has been giving the development licensee status and in India which is as of now in the hands of two entrepreneurs Amit Jatia , Vice Chairman, Hardcastle Restaurants Pvt. Ltd for West and South India and Vikram Bakshi ‘s Connaught Plaza Restaurants Private Limited for North and East India.

McDonald’s Franchise Disclosure Document

Before you settle on the choice to open a McDonald’s franchise, you need to look over a copy of their Franchise Disclosure Document (FDD). This is a 375 page documents that gives a broad outline of the rights and responsibilities of a McDonald’s franchise proprietor.

It contains fundamentals of cost, area, training, operations, and the progressing expenses required in working a McDonald’s franchise. The document contains a great deal of lawful and business terms, so on the off chance that you don’t have a broad foundation in law or business you might need to employ a business or corporate lawyer to help you interpret the FDD. You need to ensure you completely comprehend your rights and responsibilities before focusing on a franchise.

You can buy it online or simply Google the PDF (free).

Expenses

Most McDonald’s owner/operators have entered the corporation by purchasing an existing restaurant.

A McDonald’s franchise requires a total investment of ~Rs 6.6 Cr-Rs 14 Cr, with liquid capital available of Rs 5 Cr.
The franchise fee is Rs 30 lakh.
As a franchise, you will be charged a service fee of 4% of total sales.

Expected Breakeven Point: ~2-3 years