What are the necessary steps for acquiring a McDonald’s franchise?
Obviously, I had an advantage because I was a McDonald’s corporate employee for twenty-five years. For a new licensee coming in, he or she has to spend the equivalent of six months full-time working in a McDonald’s learning the fundamentals of the kitchen, the customer, and core operations. That’s most critical. The next piece is having the financial wherewithal, and if it’s a new store, to finance the equipment, fixtures, and exterior. Currently, McDonald’s has a non-refundable $45,000 franchise fee. If you have an outstanding candidate without the financial wherewithal, the company can lease the entire operation, and then the candidate can have an opportunity to buy it once it’s up and running. That arrangement is the exception rather than the rule. Then there are acquisitions of existing stores. There is a guideline you use to price the business based on cash flow, physical condition, and reinvestments required. It’s negotiated. Where are your locations? Three in Mankato, at Highway
