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Posted on Wed, 01/18/2012 - 03:02 AM by
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How many McDonald’s Big Macs would you have to sell in order to break even on your investment in a McDonald’s franchise? And…why should it matter?
It matters because once in awhile, people looking at franchises need to be humbled. It’s good for the soul. (Supposedly) If I could get paid $100 for every time someone, (after finding out that I was in franchising) asked me how much a McDonald’s franchise would cost to buy, I’d have enough money stashed to at least send in the down payment required for one restaurant. Seriously. Investing in a McDonald’s franchise isn’t for the meek. Actually, it’s not for most people. Either are Ferrari’s. If you happen to be the proud owner of one or two McDonald’s restaurants, I’d wager that you’re in the 1% club. (Or pretty darn close.) And, I salute you. I’m serious; it took an awful lot of courage to write a check for at least $300,000, a certain degree of intelligence to get help crafting a superb Franchise Business Plan, and some solid business skills to obtain a small business loan. Of course you would have to have some pretty powerful skill sets in order to negotiate a commercial lease with the best lease negotiators our world has ever known. __________________________________________________________________________________________________________ So, as an owner, you’d need to sell 39,312,039 Big Macs to get your $1.5 million investment back. (Please check my math; it’s based on the average cost of a Big Mac in the USA-$4.07)
And, how do I know that the average cost for a certain McDonald’s double cheeseburger concoction is $4.07? Because I looked very closely at the Big Mac Index Infographic below…..
So, what did you learn?
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