McDonald’s is indeed one of the largest and most loved fast-food franchises, not only in the United States but also in many parts of the world, with thousands of restaurants in different countries, correct? In India, you see, it is also a favorite, as it first opened there in 1996, and the company has hardly looked back ever since then. Today, it is a name that is liked by millions, no matter if they are vegetarian or non-vegetarian. That’s mainly because the offerings of McDonald’s are pretty vast and well-suited for Indian people’s taste buds. And if you are someone with a business mindset thinking of capitalizing on it somehow, then you may have heard of McDonald’s Franchise opportunity, right? Well, let’s see how much McDonalds (McD) Franchise Cost In India, what the things to keep in mind, and a few other factors. Here we go now.

Who To Contact For McDonald’s Franchise Application in India

Also,  McDonald’s makes use of the franchise model in India via the two companies mentioned below:

• For example, if you are in North and East India, to open a McDonald’s franchise you need to contact Connaught Plaza Restaurants Private Limited.
• For the case of South India, or for some parts of West India, if you are interested in a KFC franchise, you need to contact Hardcastle Restaurants Pvt. Ltd.

These companies still have the right to manage the McDonald’s restaurants in their respective regions. So, if you want to open a franchise depending on the geographical area you choose, you have to rely on the respective company.

Different Types of McDonald’s Franchises in India

So the brand McDonald’s has a range of different types of franchises depending on the establishment handled, its location, and outlet size.

• Traditional Restaurant: These huge venues are found in shopping malls, shopping centers, or areas of high pedestrian traffic, you know? And just so you know, they have a full menu and facilities for clients. The fee for the franchise for these is approximately ₹30 lakh and the leasing agreement lasts about 20 years, that’s all.
• Satellite Location: Then there are these smaller ones that can be found in places like airports, colleges, or universities. They have a limited menu and tend to be takeout. They have a franchise fee of about ₹15 lakh and the leasing term can vary depending on the place.
• STO (Small Town Oil) Location and STR (Small Town Retail) Location: The main difference between these two types of outlets is that STO usually is situated on highways or at rest stops close to petrol stations, and STR retail outlets are typically situated near bigger stores or shopping centers in small towns. For sure, these places have a dining area and serve a full menu of dishes.
• BFL Franchise (BFL Franchise Lease): This type is mainly for offices or workplaces, where a particular canteen can be run by leasing the outlet, you know? And yes, these are often on 3-year leases which, if the outlet does well, can be extended.

Cost Breakdown of McDonald’s Franchise in India

Alright, now onto the main part, which is just to answer how much McDonalds (McD) Franchise Cost In India. But just to be clear from the start, you see, starting a McDonald’s franchise in India is not a small thing. The costs associated with it are as such:

• Franchise Fee: The franchise fee can range from ₹15 lakh to ₹30 lakh, depending specifically on the type of restaurant, keep that in mind.
• Setup Cost: Installation of the restaurant, which contains installations such as the furniture and equipment, as well as the training of the staff, costs in total between ₹6.6 crore and ₹14 crore. That’s pretty much the range you should be prepared for, so if you are going all in, make sure you are willing to spend at least that much.
• Working Capital: Not to mention though, in the beginning, you should have at least ₹5 crore in liquid cash to handle emergencies and to run operations when in the initial stage.

Beyond these, you will also be incurring royalty fees, which are generally a percentage of your sales, and also the advertising fees.

Return on Investment (ROI) and Profitability

Just so you know, McDonald’s is a franchise that in general takes around two or three years before it can reach the break-even point, and that is when it starts to earn a profit, on average. There are some factors that affect the ROI such as:

• The place in which the outlet is situated.
• Customer flow and the level of demand.
• The level of professionalism with which the outlet is managed.

One of the major benefits of being the owner of a McDonald’s franchise is that you don’t need to spend a lot of money on advertising, that’s the best bit about it all.

NOTE: One super important thing here is that if you want to keep yourself updated on the McDonalds (McD) Franchise Cost In India, you should always be checking it out yourself by reaching out to the companies we mentioned above that approve these franchises in different parts of the country.