5 ms·
I wouldn't say a ton of money. This article [1] says it averages 150k/yr profit but it costs between 1-2mil to start. [1] https://www.mashed.com/178309/how-muc
by TrueSlacker0 4y ago
I wouldn't say a ton of money. This article [1] says it averages 150k/yr profit but it costs between 1-2mil to start.
[1] https://www.mashed.com/178309/how-much-mcdonalds-franchise-owners-really-make-per-year/ https://www.mashed.com/178309/how-much-mcdonalds-franchise-o...
- lumost 4y agoTake 5 million in loans, start 3 and then you have 450k - .05*5 million = 250k free cash flow. Not a bad deal at all in an inflationary environment, but a rough deal in an environment with rising rates.
- listenallyall 4y agoThey won't allow you to franchise if you need a loan to come up with the money. You need to demonstrate "unencumbered liquid assets." They might allow a certain percentage to be borrowed, but it's likely rather low.
- roflyear 4y agoThat's pretty good.
- hef19898 4y agoThat's what, ten percent in profits? Sounds pretty good to me!
- lupire 4y ago"franchise owner" usually means managing the restaurant, not passive income.
- hef19898 4y agoLike all investors / business owners income is the resukt of actively managing something. In the case of McD franchise owners, there are at least people working for you to whom tasks can be delegated
- diordiderot 4y agoUsually means hiring a GM and checking the books / visiting once a month.
- nsxwolf 4y agoThat's why a lot of people own 2 or 3.
- rednerrus 4y agoI'll take a 10 cap any day of the week right now.