If you’re thinking of joining the world’s most iconic fast-food brand, you’re probably looking for many answers. For instance, you might be thinking: How much does it cost to buy a McDonald’s franchise in Australia? How do I open an Australian McDonald’s franchise? We’ll provide helpful answers to all these questions and more. But first, let’s take a look at the history of the legendary McDonald’s brand.
The History of McDonald's: From Humble Beginnings to a Global Fast-Food Icon
Before delving into franchise ownership, it's essential to appreciate the rich history of McDonald's – albeit a brief one.
In 1940 (over 80 years ago), McDonald brothers Richard and Maurice opened a small drive-in barbecue called ‘McDonald’s Famous Barbecue’ in California, USA. The brothers later realised that most of their profits came from hamburgers, so they ditched the drive-in barbecue and focused on burgers, potato chips, apple pie, soft drinks, and milkshakes. Due to a redesign and efficiency improvements, they managed to open six new locations.
By this time, Ray Kroc (a seller of the milkshake machines the brothers used) was interested in their successful business formula. Impressed by their innovative fast-food system, Kroc saw the potential for expansion.
Kroc acquired the rights to franchise the brand, and the first official McDonald's franchise opened in Des Plaines, Illinois, in 1955. From there, McDonald's quickly became an international phenomenon, known for its signature menu items, including the Big Mac and the Happy Meal.
As of 2024, McDonald’s has 41,822 restaurants worldwide, 1,044 of which are in Australia. In 2023, McDonald’s generated US$25.49bn globally.
How Much Does a McDonald’s Franchise Cost?
The total initial investment required to open a McDonald’s franchise in Australia can range from AUS$460,000 to over AUS$2,300,000. The investment range depends on factors such as location, type of restaurant, and whether it’s a new or existing franchise. McDonald’s Australia requires investors to have a minimum of AUS$500,000 in liquid cash.
Here are additional McDonald’s franchise costs in Australia:
- Royalty fee: 4% of gross revenues
- Marketing fee: 3% of gross revenues
How Much Can You Earn From a McDonald’s Franchise?
While a McDonald’s franchise has expensive upfront investment costs, it can represent a very rewarding and profitable opportunity. While a McDonald’s franchise profit varies, here is some helpful financial information:
- Median annual sales of a McDonald’s location in Australia: AUS$2,908,000.
- Average profit margin of 10%, meaning an estimated annual profit of AUS$290,800 per location.
Running a McDonald’s franchise in Australia can provide franchisees with great returns, but it’s crucial to note that the brand selects franchisees based on their dedication, business acumen, and willingness to follow the company’s tried-and-tested system. Success requires commitment, adherence to quality and standards, and a passion for customer satisfaction.
Training and Support: What Does McDonald’s Offer its Franchisees?
There’s no denying that the world’s largest and most iconic fast-food franchise offers comprehensive training and support to its franchisees.
When you become a McDonald's franchise owner, you'll benefit from:
- Training: McDonald's offers a Registered Applicant Training Program that can last between nine to 12 months and is a full-time, unpaid process. Even after completing the program, becoming a franchisee is not guaranteed. The extensive and very selective training process is designed to ensure that the brand selects a franchisee equipped to take on the demands of running one of its restaurants.
- Consultancy: McDonald’s franchisees are offered access to a network of consultants with over 20 years of experience.
- Marketing and advertising: McDonald's conducts national and local marketing campaigns to drive customer traffic. Franchisees also receive support in executing local marketing initiatives.
- Ongoing support: You'll have access to a dedicated McDonald's consultant who provides guidance and support to help you run your franchise effectively.
- Quality control: McDonald's conducts regular inspections to ensure that franchisees maintain high-quality standards.
How Do You Become a McDonald’s Franchise Owner?
If you’re looking to buy a McDonald’s franchise in Australia, you’ll need to be prepared to go through an extensive and thorough recruitment process. On average, buying a McDonald’s franchise in Australia takes over a year. This is generally what the process entails to become a McDonald’s franchise owner:
- Submit the initial application
- Meet initial financial requirements
- Have a series of interviews with McDonald’s representatives
- Complete the training program
- Final evaluation and approval
- If approved, sign the Franchise Disclosure Document
- Select location
- Financial investment
- Pro-opening preparations, including setting up the restaurant and hiring and training staff
- Grand opening and launching your franchise
Other Franchise Opportunities You Can Consider
Owning a McDonald's franchise in Australia can be a rewarding investment. It offers the opportunity to be part of a global brand with a rich history. While the initial investment is substantial, the potential for profit and success is significant. With McDonald's training and support, you'll have the tools and resources needed to run a successful franchise and contribute to the legacy of the Golden Arches in Oz.
However, if you don't have sufficient capital to invest in a McDonald's franchise just yet, don't worry! There are hundreds of opportunities out there.
If you’re still deciding on what franchise to choose, you can take some time exploring other food-related franchise opportunities on BusinessesForSale.com.
You can also read our useful franchise guides. These offer credible information on the world of franchising, from how to choose the best franchise to understanding franchise agreements.
Frequently asked questions
Is McDonald's franchised in Australia?
Approximately 85% of McDonald’s restaurants in Australia are owned and operated by local franchisees.
Who owns the most McDonald's in Australia?
The businessman Hani Sidaros owns 12 McDonald’s stores based in Canberra, Australia. He employs 105 managers and 1,250 crew members across his stores. Another unnamed individual also owns 12 stores in Melbourne.
Which food franchise is most profitable in Australia?
While it’s difficult to say conclusively that any others are more profitable, Subway, KFC, Boost Juice, Oporto, and Guzman y Gomez are all considered lucrative fast-food franchises.