How Much Does It Cost to Buy a McDonald’s Franchise in Australia?

Fast food mealsThe initial costs of a McDonald’s franchise in Australia include at least $700,000 of fresh funds. Thus, it may be better to consider other types of food franchises, especially if your budget is limited.

Submarine sandwich franchises are better alternatives for those with a small capital. The Franchise Council of Australia (FCA) also said that some franchises might charge as low as $5,000 for upfront charges and the setup.

Franchising Costs

Aside from the initial costs of buying a franchise, you may need to pay recurring fees. Companies usually impose a fixed rate per month that could start at $50. Others charge a certain percentage of the turnover, which ranges between 2 per cent and 15 per cent.

That’s why before signing any deal, you should carefully review the long-term costs. For instance, don’t be distracted by a $5,000 initial setup fee if there is a monthly charge of $200. The accumulated expenses will be almost half of the initial price after a year of payments.

Benefits of Famous Brands

If you have the money, then investing in a big-name franchise like McDonald’s has advantages. Franchisees have access to a broad range of marketing support and services. You also have the chance to provide fresh product ideas. The company’s franchisees worldwide were the ones who thought about The Big Mac, Filet-O-Fish and Bacon & Egg McMuffin.

However, running a McDonald’s franchise requires a long-term commitment in Australia for at least 20 years. You would also need to be a full-time franchise, which means that you shouldn’t split your time with another job.

There are different pros and cons to buying a famous franchise over choosing a smaller brand. If you’re a first-time franchisee, it’s better to try a lesser-known yet equally profitable business to avoid spending too much.