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How to Franchise: McDonald’s in the Philippines




Love to have your own franchise of McDonald’s in the Philippines?

Everything you need to know about the McDonald’s franchise — from franchise fee to the investment package inclusions to the contact details — is here. Read below to gain relevant information that can help you begin your McDonald’s franchising journey.

(See also: Want to franchise Jollibee?)

About the McDonald’s Franchise

franchise-logo-mcdonaldsAll over the world, more than 80% of McDonald’s restaurants are owned by franchisees.

McDonald’s started franchising in the Philippines in 1985, and has since expanded to build a network of over 200 franchised restaurants nationwide in recent years.

In the Philippines, the owner of and Master Franchiser of McDonald’s is Golden Arches Development Corporation.

McDonald’s franchisees are called Owner/Operators and play a major role in the global success of this world-renowned brand.

Benefits of Franchising McDonald’s

As a McDonald’s Philippines Owner/Operator, franchisees gain the following advantages:

  • Extensive support system to cover all aspects of the business, which includes operations, supply chain, and marketing support throughout the entire franchise term
  • World class training to deliver world class service and business success
  • 100% customer awareness of the world’s leading fast food restaurant
  • Access to world class suppliers that provide the necessary goods and services that go into great-tasting food and excellent services that customers enjoy
  • A peer network of franchisees and the McDonald’s network of over 27,000 employees nationwide

Main Products and/or Services Offered

  • Burger McDo
  • Big Mac
  • Big n’ Tasty
  • Quarter Pounder
  • Chicken McDo
  • Fillet-o-Fish
  • Pepper Burger Steak
  • McSpaghetti
  • McNuggets
  • McFlurry
  • Caramel Sundae
  • McCafe
  • McDo Kids’ Happy Meal
  • Twister Fries

Total Franchise Fee and Investment

How much does it cost to acquire a McDonald’s franchise in the Philippines?

The franchise fee typically ranges from P30 million to P50 million, depending on the store location and store layout. McDonald’s requires restaurants to be placed in locations or land that are owned or leased by the franchisee.

The total franchise investment may vary depending on the following factors:

  • Restaurant size
  • Suitability of existing building
  • Site location whether provincial or within Metro Manila
  • Equipment specifications involved based on the kind of menu offering (regular or limited menu line). In all cases, however McDonald’s specifies and approves the menu offerings.

Standard Package Inclusions

The franchise fee already covers the following package inclusions:

  • Architectural Planning and Design Fees
  • Building and leasehold improvements and other relevant site works necessary
  • Kitchen, air-conditioning and exhaust equipment
  • Cash registers
  • Emergency generators
  • Seating, signages and decor
  • Other furniture and fixtures

Franchising Terms and Conditions

The franchise contract is good for ten (10) years or lease contract of the land, whichever is shorter. The franchise agreement is renewable depending on the performance of the store.

McDonald’s grants franchises to an individual on a sole proprietorship basis. In the Philippines, franchises are also awarded on a per restaurant basis. Franchises are not awarded on a territorial or geographical basis.

Site Selection

As regards site selection, McDonald’s conducts feasibility study on the proposed site. The location is thoroughly studied and evaluated, including the store’s possible traffic count.

Application for the site and application for the franchise are treated and processed separately and independently from each other.

Contact Details

If you’re interested to be a McDonald’s franchisee / owner / operator, contact:

The Franchising Department
McDonalds Philippines
17th Floor, Citibank Center Bldg.
8741 Paseo de Roxas St.,Makati City

Telephone Number: 8888-500 local 5000

Cellphone Number: 09199112553

Email Address: franchising@ph.mcd.com

 

You might be interested in other franchising opportunities here: Complete list of Philippine companies available for Franchising

See also: How to get your own Jollibee franchise in the Philippines or abroad

Information and Image Sources: Official Company Website, Philippine Daily Inquirer, SunStar Philippines



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5 thoughts on “How to Franchise: McDonald’s in the Philippines”

  1. Bwayan Jordison says:

    Never knew that you need that much money just to franchise mcdonalds, I expect it’s not more than 10m

    1. Code says:

      It is….I guess it will take less than 2 yrs to get all ur investments when you buy McDonalds franchise…

  2. Code says:

    It will take less than 2 yrs to get all your investments (roi)

  3. MUTT says:

    Say you sell P5M of food products a month, that’s P60M a year. Account for food costs and costs of operating the Store (labor, utilities, royalties, rent, etc.), you might get cash flows from that annual Sales by 10%, or P6M per year. Without taking to account inflation, some growth on your Sales, and taxes, it would approximately take you a minimum of 5 years to recover the cheapest investment in the range declared above, which is P30M. This projected payback would be longer as the initial investment increases or as the assumptions of our computations become more realistic.

    2 years of recovery means either A) you could sell P13M a month, B) you are so thrifty you earn 25% cash flows (which would entail sacrificing a lot of quality), C) you bought a very cheap site, say, worth P12M (is this a food stall?), or D) you won’t pay taxes and/or other expenses, or a combination or all of these.

    ***Some approximation only***

  4. Celso M Solis says:

    Good day to everyone. I am Celso M Solis from Mataasnakahoy, Batangas. I would like to offer to anyone my corner lot for long term lease or rent.This lot has an area of 1000 sq mtrs.more or less and the frontage alone side the main road is 40 mtrs.The lot is very nice. And good for convenient store or food chain. Any body who is interested may contact me any time. Thank you very much.

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