03/12/2017 - Fast food outlets are always looking for people to take on a franchise
Lots of people get their first job flipping burgers and building butties at a fast food chain - but what does it take to make it to the top of the food chain and own a franchise?
The likes of McDonald’s and Subway are always looking for new franchisees to run their growing number of branches and there are serious benefits to being your own boss.
You’ll need money to invest in buying a restaurant, as well as one-off “franchise fees” which can cost tens of thousands of pounds.
Franchisees also need to be prepared to make a long-term commitment to running their fast-food outlet - with McDonald’s demanding a 20-year contract.
However, running a franchise can be a seriously lucrative venture, with one McDonald’s entrepreneur telling of how he went from earning £25 a week to becoming the biggest McDonald’s franchisee holder in the country.
Paul Crocker employs more than 1,700 people in Kent - having nearly every McDonald’s branch there.
Here’s how you can own a franchise of McDonalds or Subway - two of the country’s biggest fast foot chains, writes the MirrorOnline .
Taking on a McDonald’s franchise is a 20-year commitment, so the fast-food giant is pretty selective in picking the people who work with them.
You don’t need any experience in the food industry to apply, but prospective franchisees do need to be able to build and lead a business.
Restaurants cost between £200,000 and £500,000 to buy, so you’ll need deep pockets if you’re thinking of getting involved.
Franchisees typically need to provide 25% of the funds upfront, and the rest can be funded through a bank loan - so that’s an investment of anywhere between £150,000 and £375,000 to get started.
There’s also a one-off “franchise fee” of £30,000 to pay up, as well as training costs of £750.
On top of all this, franchisees need to pay a refundable £5,000 security deposit when they start training, which gets refunded when the first restaurant is bought.
Once the franchise restaurant is up and running, there’s still the monthly fees to think about, with a monthly premises rent based on sales and profitability.
A slice of the profits also go towards the McDonald’s national marketing spend - usually about 4.5% of profits.
Subway has over 2,500 locations in the UK and Ireland, offering entrepreneurs the opportunity to run their own business underneath the company’s recognisable brand.
The sandwich company is always expanding and looking for new franchisees to help grow the business, asking people with properties that could be suitable stores to apply online.
Subway’s Merseyside location requirements include sites in Old Swan, Formby, West Kirby, Page Moss and Southport.
To become a franchisee, Subway requires a two week training course in Cambridge.
There are also online training courses for franchisees and their staff available through “The University of Subway”.