How to Franchise McDonald’s in the Philippines

How to franchise McDonald’s in the Philippines? So have you decided to choose McDonald’s over other fast-food chain franchises in the country? No wonder it is the largest chain of hamburger fast food restaurants in the world, with more than 32,000 restaurants serving more than 60 million people in more than 100 countries every day. Perhaps, McDonald’s is also your personal favorite quick-serving restaurant since it arrives here in the Philippines. You love Ronald McDonald and you’ve been touched by the famous tagline “love ko to” (I’m lovin it!).

McDonald’s has an outstanding customer service and always promise to serve only the best meals in every restaurant at any time. Among the food and drinks served by McDonalds are Big Mac (hamburger), chickenburger, ChickenMcDo, Chicken McNuggets Mcspaghetti, French fries, and deserts like sundae, McFlurry and Coke float. They also serve breakfast, such as egg and sausage muffin. The following are the information you need to know in franchising the McDonalds business in the Philippines.

What does McDonald’s look for in a franchise applicant?
The following qualifications are considered by the company in looking for the right franchisee:

1. Entrepreneurial spirit and strong desire to succeed.
2. A strong business background.
3. Willingness to devote full time and best efforts as hands-on and on-premises franchisee.
4. Willingness to participate in a training program, which may take 9 months or longer to complete.
5. Financial capability.
6. An excellent people handling skills.
7. Filipino citizen.

How and to whom are the franchise rights granted?
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.

How much is the Franchise Fee and how long is the franchise term?
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.

What kind and how long is the training involved?
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.

What are the costs involved in putting up a McDonald’s Restaurant?
The costs involved are the following:

1. Building and leasehold improvements
2. Kitchen, airconditioning and exhaust equipment
3. Seating and accessories
4. Signages
5. Cash registers
6. Emergency generators
7. Miscellaneous furnitures and fixtures
8. Franchise fee
9. Refundable security deposit

How much investment is involved?
The investment cost will range from P25 million to P35 million, depending on the following factors:

1. Size of the store
2. Building (construction of a new one or use of existing suitable building)
3. Location of store (within or outside Metro Manila)
4. Land (lease or purchase)

What are the basic steps and requirements in the application process?
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.

How to reach McDonald’s Franchising Department?
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)
franchising@ph.mcd.com

For more information about McDonald’s corporate profile and its franchising details, please visit their official website at www.mcdonalds.com.ph.