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The finance bit

What does it cost?

As a guide, the cost of a restaurant typically ranges from £125,000 to £325,000. You will need to provide at least 25% of the value as unencumbered funds, the remaining 75% can be funded through a bank loan with favourable funding terms.

There's also a one-off franchise fee of £30,000 and a training deposit of £5,000 which is refunded when you complete your training.

There are also ongoing fees:

  • Monthly rent on the premises, based on sales and profitability (usually ranging from 10% to 15%)
  • Service Fee for the use of the McDonald's system - 5% of sales
  • Contribution to the national marketing spend, currently 4.5%

And the returns?

Cashflow (before debt repayment) typically ranges from £95,000 to £200,000 per year for each restaurant but this isn't guaranteed: it could be more, it could be less.

Visit our finance partners' websites to find out more: