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McDonald's

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A franchise agreement takes place when the concerned parties involved are bound together through certain contractual provisions. This is an arrangement whereby someone with an idea for a business, the franchisor, sells to another person the franchisee the rights to use the business's name, sell a product, or provide a service to someone else. A franchise agreement will usually specify the given territory the franchisee retains exclusive control over the area protection, as well as the extent to which the franchisee will be supported by the franchisor. 


McDonald's is the leading global foodservice retailer with more than 30,000 local restaurants serving nearly 50 million people in more than 119 countries each day. It is one of the worlds most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating out market in virtually every country in which we do business.
 
Their rich history began with their founder, Ray Kroc. The strong foundation that he built continues today with McDonald's vision and the commitment of their talented executives to keep the shine on McDonald's arches for years to come.
 
McDonald's provides potential buyers with a comprehensive guide to assist you in the evaluation and acquisition of the restaurant. You will negotiate directly with the selling Owner. Prior to any transfer, McDonald's USA, LLC must approve the transfer of the franchise from the buyer to the seller.
 
They require that the buyer pay a minimum of 25 percent cash as a down payment toward the purchase of a restaurant. The remaining balance of the purchase price may be financed for a period of no more than seven years. McDonald's Owner/Operators enjoy the benefits of their established relationships with many national lending institutions. They believe their owner enjoy the lowest lending rates in the industry.
 
The total investment for this franchise is 500,000 to 1.6 millions dollars, with express or kiosk option available. Franchise fee is 45,000 dollars. The ongoing royalty fee is 12.5 plus percent. The term of agreement is of 20 years and is renewable. Renewal fee is of 45,000 dollars. 
 
According to entrepreneur magazine 2002-2006, McDonald's ranked 16 in 2006, 13 in 2005, 7 in 2004, 4  in 2003 and  7 in 2002 in Franchise 500 rank and ranked 76 in 2006, 33 in 2005,  27 in 2004, 6 in 2003 and 9 in 2002 by Fastest-Growing Franchises.




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