Ray Kroc had a vision of serving fresh fast food anytime, anywhere. For over 50 years, McDonald’s has been giving opportunities to people who share the same vision. Now, there are more than 7,000 McDonald’s franchisees in 119 countries. In the Philippines, McDonald’s started opening its doors to franchising in 1985. Since then, franchised stores in the Philippines grew to over 100 stores with more than 60 franchisees (Most have been part of the McDonald’s Family for around 10 to 15 years!). We hope that we may someday open the doors of the Golden Arches to you.
Frequently Asked Questions
Q: What is the basic franchising approach of McDonald’s Philippines?
A: The qualified franchisee is granted a license to operate a McDonald’s Restaurant in a particular site. Each franchisee is required to devote full time and best efforts in the day-to-day operation of the McDonald’s restaurant. He finances all of the total investment, operates the store the McDonald’s way and pays a continuing royalty and service fee to McDonald’s (as a percentage of gross sales).
Q: What qualifications does McDonald’s look for in a franchise applicant?
A: McDonald’s considers the following, but does not limit itself to franchise applicants displaying:
Q: What is the franchising arrangement available?
A: Every chosen candidate will be a DEVELOPMENTAL FRANCHISEE, where he invests in real estate lease, building and leasehold improvements, equipment, seating, signage and décor. McDonald’s receives continuing royalty and service fee from the franchisee.
Q: How and to whom are the franchise rights granted?
A: McDonald’s only grants a franchise to an individual or sole proprietor, and is a Filipino citizen. Generally, franchise rights are not granted to partnerships or corporations. McDonald’s grants the franchise on a per store basis only and does not grant territorial rights or exclusivity.
Q: How much is the Franchise Fee and how long is the franchise term?
A: The franchise fee is $22,500 (payable in pesos at current FOREX rate) for 10 years or the term of the lease of the land or space, whichever is shorter.
Q: Who selects the site for a store?
A: McDonald’s selects the site for the store but the applicant may submit any promising site for evaluation.
Q: What kind and how long is the training involved?
A: The training program involves hands-on work in an existing store, classroom courses, seminars, one-on-one sessions with key corporate personnel and a lot of self study. The main objective is to get the applicant ready to operate his store by properly implementing the McDonald’s system and standards. The training program takes 9 months more or less to complete depending on the progress and the amount of time the applicant spends on it prior to opening.
Q: What are the costs involved in putting up a McDonald’s Restaurant?
A:The costs involved are the following:
Q: How much investment is involved?
A: The investment cost will range from P25 million to P35 million, depending on the following factors:
Q: If you are interested, what are the basic steps and requirements in the application process?
A: You need to submit an application form together with your letter of intent and a copy of your comprehensive resume. Submission of an application does not obligate you or McDonald’s in any way. After reviewing the application and checking references, an interview will be arranged, if we believe you are a promising candidate. If there is a mutual interest in proceeding to the next step, we will arrange an “On-the-Job-Experience” (OJE) in which you will work in a McDonald’s restaurant for two days. If both you and McDonald’s agree to proceed, formal training with McDonald’s commences.
For further details and information, please contact:
The Franchising Department
16th Floor Citibank Center Bldg., 8741 Paseo de Roxas St., Makati City
Tel No: 8888-500 loc. 5000 (look for Menchu Bardon)