How to get McDonald Franchise In India? Overall Investments And Profits
Table of Contents
Having a business and making money out of it is not a new concept. However it is a bit difficult task to do for sure. Many an entrepreneur fails to establish their newly set up business and earn profit from it. The reason behind it is the name of your business that takes time to become a brand name. On the other if an entrepreneur starts with already a brand name, it would be much easier for them to earn profit, like franchise business of any big names such as McDonald.
McDonald is one of the leading food chains in the world. Owning McDonald’s franchise is not only profitable but also a faster growing business for any person.
What is Franchise?
Franchise is kind of business in which a person sells products and services of other company under the brand name of that particular company. That means if you are a franchise of McDonald you will sell McDonald’s products in a McDonald’s branch in your place/land. For doing so, the franchiser has to pay a fixed amount of money to the owner that is to McDonald. To take franchise of McDonald, you can use your own land or rented land and open a branch of McDonald to sell their products.
About McDonald – History
McDonald is a food chain that sells fast food like burgers, French fries, wraps and soft drinks and so on. It is a worldwide famous food chain where one gets on-the-go-food at any time. It was established by two brothers namely Maurice and Richard Macdonald. They started this venture in the year 1940. After 15 years of successful business, they started selling its franchise for the first time in the year 1955.
In that year Ray Crock has joined them and has become first franchise agent for McDonald. After that they kept selling the franchises. Currently 119 countries have innumerable McDonald outlets and franchises.
McDonald’s Products and Services
As mentioned that McDonald is famous for on-the-go-foods or fast food. It is a vegetarian and non-vegetarian food joint. You can expect Burgers, Salads, French Fries, Combo Meals, Cold Beverages, Mojitos, Deserts and wraps and so on. McDonald is a restaurant where people can seat and have their food. They also have ‘take away’ facility as well.
- The company has more than 36, 000 outlets in across 119 countries in the world. Over one million people are employed in this company across the world. As said that it is a restaurant and it has all provision of seating arrangements in and out of the outlet.
- Over 55 Million customers around the world visit the outlets of McDonald every day. According to the reports, this number will soon increase as more people are visiting the stores on regular basis and the company is growing faster.
- The speciality of McDonald outlets is they all look similar in every country, every city. The design and the interior of all the outlets are same. Only the difference is the locations, cities and countries of the outlets.
- McDonald offers their own land to open franchise of their company. That is if you want to buy franchise from McDonald but you don’t have land to open their outlet, then you can take their land to open one. In this case you have to pay rent of land to them.
How to get McDonald Franchise in India
Like other countries, India does not have direct facility of buying franchise of McDonald. There are two biggies in India namely Hardcastle Restaurant and Connaught Plaza Restaurant. These two restaurants headed by Amit Jatiya and Vikram Bakshi, have the permission to sell franchise of McDonald in India. Those who are willing to take franchise of the said company will have to apply either of these two companies. Hardcastle Restaurant sells McDonald’s franchise in the West and South India while North and East Indian franchisees are under Connaught Plaza Restaurant.
Process of Franchise – Documents
To get the franchise you need to know the details of the franchise and its guidelines. There is a document called Franchisee Disclosure Document that has to be read by the franchiser before heading to the business. The document is easily available online. Anyone can download the PDF file to get the details of Franchisee business and buying franchisee of McDonald. These documents are needed to be bought. You can easily buy them using Net Banking or Debit/Credit card from the host website.
Processing of Franchise
- To get franchise of McDonald one has to follow some steps. Firstly the person has to apply for the franchise. He/she has to fill up the application form, mentioning their personal and business details.
- After the application form, a telephonic interview with the franchisee takes place. The franchisor takes an examination as well along with the interview over the phone. If the franchisee gets through both the examination and interview, he will be sent to any of the McDonald outlets in the city.
- In the outlet, he will learn and know how the work is done by the employees in the outlet. The franchisee will get more knowledge about the technicality and work process of McDonald. Afterwards a panel of officials meet the franchisee for final interview. Once through, the franchisee can start with the Mcdonald Franchise Business anytime.
Cost of opening a franchise of McDonald – Investments and Profit
McDonald Franchise Business needs nearly Rs. 6.6 Cr to Rs. 14 Cr of investment. Among this amount, round about Rs. 5 Cr is needed as liquid capital for this business. The franchise fee for McDonald is Rs. 30 Lac in India. Lastly the company charges 4% of total sales as the service fee. On an average Rs. 10 Cr is required initially to buy Franchise of McDonald in India.
In India, currently, food chains are one of the leading profitable businesses. McDonald is one such food chain in the world that gains millions of customers every day. It is expected that the business will definitely earn positive profit. Also in franchise business, advertisement costs are low as already people are aware of the brand name, especially McDonald. So with moderate investment there can be huge profit in this business.
Locations – Land details
Location is very important for any kind of business. For food chains it is even more important to have a pleasant and prime location so that it can attract more customers round the clock. While choosing a location one must consider the area and the locality. Whether people will visit the outlet, buy products or not is very important to consider.
- There can be 4 types of locations such as traditional restaurants like food courts, food buildings, and restaurant hubs and so on. Here people get many options under one roof.
- Second type of location is at satellite places such as hospitals, colleges, airports, railway stations and so on. Third type of franchise locations is STO Locations such as petrol pumps and gas pumps. Finally the 4th type of location is the one that provides business facilities as well.
- These 4 types of locations or franchisees are given by McDonald. These areas can grab more customers than usual areas. Around 50,000 square feet area with 4000 sq.ft. open area is needed for establishing McDonald outlet.
- If the franchisee does not own his / her land, then he /she can take land from McDonald. For that McDonald will charge a rent from the franchisee. It is the rule for McDonald Franchise. They will act as a landlord if you use their land to set up McDonald outlets.
Each franchisee has issue a permit from the local government bodies. That is before setting up the outlet the franchisee has to take the permission from the local governing body for trading in that locality.
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