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How to Franchise McDonald’s in the Philippines 2024

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    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.

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    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.

    Royalty Fee5%
    Marketing Fee5%
    Franchise FeePHP 1,150,000
    Investment CapitalPHP 45m – 60m
    Franchise Terms10 years
    CoverageNationwide, International
    OriginMetro Manila (NCR)
    Cost of Investment DetailsDepending 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.

    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.

    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).

    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

    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.

    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.

    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.

    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!

    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


    email: [email protected]

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