I recently rewatched the movie “The Founder” the biopic of Ray Kroc and the beginning of McDonalds.
What truly struck me was that originally the initial costs of a McDonald were minimal. The franchises were achievable for lower middle class people.
Currently most McDonald’s owner/operators have entered the corporation by purchasing an existing restaurant (someone who failed or an estate sale).
But to eligible to open a McDonald’s franchise, the would be owner is required to make a total investment of $1-$2.2 million, with liquid capital available of $750,000. The franchise fee is $45,000.
Not within the reach of most middle class families today. It is interesting how the formula has changes to be more exclusive.