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when opening a McDonald's where does the sources of funds come from?

when opening a McDonald's where does the sources of funds come from?

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Answer #1

when opening a McDonald's where does the sources of funds come from?

Opening a McDonald's franchise can be costly

  • Minimum of $750,000 in personal funds in bank account is necessary.
  • on purchase of an existing restaurant, one must have 25% of the down payment towards the total cost must be paid up front
  • As a franchise, one will be charged a service fee of 4% of total sales. Also, $45,000 of your initial franchise fee must be paid to McDonald's.
  • The franchisor issues an Operator's Lease for each site owned or leased by McDonald's.
  • Any third party lender might lend the funde to the franchisee
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