How to Franchise McDonald’s in the Philippines 2024

So you want to own your own McDonald’s franchise? You’re not alone; many people see the Golden Arches and think, “That could be me!” Franchising McDonald’s in the Philippines is a complicated process, but it is possible for those who are willing to put in the time and effort. Here’s what you need to know.

Also, you may be interested in some other franchise articles we’ve covered this year:

How to Franchise Jollibee in the Philippines 2023

Waffle Time: How to Franchise in the Philippines 2023

Table of Contents

0. franchise requirements

McDonald’s has listed the following requirements for franchisee applicants:

Franchise licenses are only available to Filipinos or former natural born Filipino Citizens;

Franchises are awarded on a per restaurant basis; and
The franchise term is 10 years or the term of the lease (whichever is shorter).

The follow are the financial requirements for the McDonalds Franchise in the Philippines.

Parameters/Features	Details
Royalty Fee	5%
Marketing Fee	5%
Franchise Fee	PHP 1,150,000
Investment Capital	PHP 45m – 60m
Franchise Terms	10 years
Coverage	Nationwide, International
Origin	Metro Manila (NCR)
Cost of Investment Details	Depending on restaurant size, type, location, and features, the CAPEX is about $1 million US Dollars or the Philippine Peso equivalent at the time of construction. This covers architectural planning, global design fees, building and leasehold improvements, air-conditioning system, kitchen equipment, seating, signage, decor, and other furniture and fixtures, among others.

1. Research the market

The first step to franchising McDonald’s in the Philippines is to research the market. This includes things like demographics, income levels, spending habits, etc. It’s important to make sure that there is a demand for McDonald’s products in the area where you want to open your franchise. Some important aspects which should be investigated include:

Ensure that the market is not already saturated. Are there competing fast food restaurants in the area? Is the local market large enough to support your McDonald’s location?
How far is the next McDonald’s from your intended location? The further the better.

When looking at the competition, you should identify the types of consumers that aren’t yet catered for, such as families (think the kid area of a McDonald’s).
Gather as much information as necessary to evaluate the revenue potential of your business – including how many potential customers you can expect at your branch.

2. Find a location

Once you’ve done your market research and you’re confident that there is a demand for McDonald’s products, you need to find a location for your franchise. The ideal location would be one that is highly visible and easily accessible by potential customers.

You also need to make sure that the space is large enough to accommodate your restaurant and that there are all of the necessary permits for you to open a business at that location. Some location factors include:

Restaurant type & size;
A corner location for a McDonalds would be optimum as you can place signage from two streets;

Parking space should also be a major consideration; and
Site location whether provincial or within Metro Manila (or how close the franchise is to a city centre or highway).

3. Obtain financing for your McDonald’s Franchise

Franchising McDonald’s in the Philippines is a costly endeavor; you will need to obtain financing from either a bank or private investors. Be prepared to present a detailed business plan as part of your loan application process. The cost (capital expenditure or CAPEX) of a McDonald’s franchise is approximately the Filipino peso equivalent of $1million (or PHP 59 million). The capital expenditure includes the following restaurant components:

Architectural Planning and Global Design Fees;
Building and leasehold improvements and other relevant site works necessary;
Air-conditioning system, kitchen exhaust and stainless fabs;

Point of sale;
Kitchen equipment, seating, signage and décor;
Other furniture and fixtures; and

Government mandated requirements.

Moreover, be prepared to provide detailed financial information, including projections for growth over the coming years. They will also ask about your experience in the restaurant industry

4. Complete training your Franchise Training

Once you have obtained financing and secured a location, you will need to complete training at a McDonald’s restaurant. This training program will teach you everything you need to know about running a successful McDonald’s franchise – from food preparation to customer service.

5. Pay the fees (including the Franchise Fee)

There are several fees associated with franchising McDonald’s in the Philippines, including an initial franchise fee, an advertising fee, and ongoing royalties. Be sure to factor these costs into your business plan before you begin the franchising process. It is estimated that franchise fees for opening a McDonald’s branch are approximately $45k or PHP 2.65 million. However, it is advisable to contact McDonald’s Philippines to get a more accurate quote.

6. marketing your mcDonald’s franchise restaurant

Finally, once you have opened your McDonald’s franchise, it is important to market and promote your business in order to attract customers and grow your business over time. This can include things like developing a social media presence, running marketing campaigns, and partnering with other businesses in the area.

Summary

Franchising McDonald’s in the Philippines is no small feat, but it is possible for those who are willing to put in the time and effort required. By doing your research, finding a prime location, obtaining financing, completing training, and paying all associated fees, you can be on your way to owning your very own Golden Arches franchise!

Frequently Asked Questions

How do I contact McDonald’s Philippines for more Information on Franchising?

You may contact McDonald’s franchising department directly with the below contact details:

Golden Arches Development Corporation

The Franchising Department

Address: 8th Floor, F&M Lopez II Bldg. 109 Carlos Palanca Street, Legaspi Village, Makati City

88888-500 loc. 5000

0998-9726564

email: [email protected]