If you want to make money, then you need to have money. Many talk about owning a franchisee McDonald’s that will make them loads of money by selling burgers. I just checked the procedure on how to apply for franchisee of various food chain in the UK.

McDonald’s

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. These include:

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

Click here for full details

Burger King

1. What is the cost of investment in a BURGER KING®?

Depending on the type of restaurant and the investment model, the total amount invested by a franchisee can be between £250k and £800k (not including the cost of land in a free standing location). The total investments for the 3 main type of restaurants are as follows:

* A 700 sqft food court kiosk starts at £250K plus $40K franchise fee
* A 1000 sqft high street location starts at £450K plus $40K franchise fee
* A 1500 sqft Drive Thru starts at £550K plus $40k franchise fee

The franchisee will need to contribute at least 40% of the capital with business loans funding the rest. We are looking for partners to open a number of units therefore it is a minimum requirement that all successful applicants can show that they have a minimum of £250k in the form of liquid or quickly realisable assets ie cash or shares/stocks.

2. What franchise & royalty fees does Burger King charge?

Currently when a franchise agreement is concluded a single fee of US$40 000 per restaurant is payable. Additionally, the franchisee pays 5% of total sales (plus VAT where applicable) in the form of a royalty contribution, and an additional 5% of total sales (plus VAT where applicable) as a contribution to the national marketing fund.

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Dominos Pizzas

What are the start up costs for a Domino’s Pizza store?

The current costs are outlined in detail on a document called Capital Costs Estimate which is available when you apply for an information pack. Broadly speaking, you will require £280,000 of which approximately £120,000 should be in the form of liquid funds.

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Starting your own restaurant …. There is no such thing like free lunch … or free franchise.

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