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Startup Costs, Ongoing Fees and Financing
Total Investment: $1,031,350 - $2,182,050
Franchise Fee: $45,000
Term of Franchise Agreement: 20 years, renewable
Liquid Cash Available: $750,000
88% of all franchisees own more than one unit. Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators).
Some franchisees are paying 12% of their sales in rent, an increase from the historic levels of 8.5%. Since U.S. McDonald's locations on average net about $2.5 million in annual sales, operators who recently renewed leases are paying an average of $300,000 under the new rate, a steep increase from the $212,500 under the previous rate. Not surprisingly, franchisees want McDonald's to roll back fees to the old rate.
Remodeling a McDonald's costs about $800,000, more than twice as expensive as the $300,000 rival Burger King (BKW +0.66%) charges its franchisees. It also tops the $375,000 Wendy's (WEN -1.14%) expects to charge for its least-expensive model, according to Bloomberg News
I don't think this takes into consideration ongoing franchise fees, costs of buying the franchise, property taxes, Utility costs, phone costs, Labor costs and also the cost of unemployment insurance, Employers costs of Social Security and medicare contributions, business insurances and Workers Comp costs, Snow removal costs, maintenance costs, and I am sure there are a few more I haven't listed. The owner of a McDonalds doesn't get that rich.
In the end, nobody gets filthy rich owning a small business. If you luck out and get A McDs in a very good location it isn't bad. When a McDs comes to town the business is good for a few years but then another restaurant starts up and yet another. Nobody gets rich.
You could eat at McD's for far less than it would cost you to make things yourself.
I don't know why society is so anti-capitalism. Even here on ATS, which used to be fairly conservative, liberalism has gotten out of hand.
I don't care if anyone ever eats at McD's. It isn't my business. But whether you love them or hate them, they provide inexpensive food to the masses. You could eat at McD's for far less than it would cost you to make things yourself. Yes, the quality and ingredients would not compare, but if you are poor, eating 2 burgers off the dollar menu might be your best option for not starving for the day. You couldn't get anything in the grocery store for that.
And I believe that all businesses deserve to make a profit. There has to be some reward for putting up with the risk and stress of being a business owner. Profits are what allow companies to hire people.
See where I'm going with this? Meanwhile you all pay 10$ a meal. Now they could claim this is to pay for staffing etc, but clearly as we all know, they pay their staff crap. Provide hardly any benefits and as we've seen with their website that was taken down recently, they even try to tell them NOT to eat at fast food restaurants.
Anywhoo, it's certainly interesting to see.