Have you ever wanted to own that golden arches sign? Watching families enter your restaurant, have a Happy Meal or take a McSpicy Paneer burger? The franchise of McDonalds has been the status of a business success for decades. And it is true, who would not like to have a bite of that?
However, making that dream a reality is a huge investment and a lot of knowledge of the process. You must have asked yourself, how much does it really cost to open a McDonalds in India? You have come to the right place!
McDonalds has about 69 million customers worldwide on a daily basis. Its presence in India is mammoth with more than 500 outlets across the country and about 20-25 percent market share in the organized Quick Service Restaurant (QSR) space. The Indian QSR market is also a booming market with an expected growth of more than 18% in the next few years in terms of compound annual growth rate (CAGR). Such an unbelievable rise and brand strength is exactly what makes a McDonalds franchise cost in India, one of the most demanded and potentially profitable investment prospects in 2025.
This guide will demystify all of that to you- including how much you will have to invest in 2025 and how to go about the application process. We will make it short, to the point and provide all the information you should know.
McDonalds Brand: History, USP & Facts as Per 2025
McDonald’s, founded in 1940 by Richard and Maurice McDonald in the USA, began as a small burger restaurant emphasizing quality, speed, and efficiency. Ray Kroc joined later and transformed it into a global fast-food franchise, making it one of the most recognized brands worldwide, with outlets in over 100 countries. Its USP lies in delivering consistent taste and quality, quick service, a menu featuring iconic items like the Big Mac and McNuggets, and creating a family-friendly, accessible dining experience that appeals to all age groups.
Global Highlights
- Global Presence: McDonald’s operates over 41,000 restaurants across more than 100 countries.
- Financial Performance: In Q2 2025, McDonald’s reported a 3.8% increase in global same-store sales, surpassing Wall Street expectations.
- Menu Innovations: The company introduced the McValue menu in 2025, featuring affordable meal bundles.
- Digital & AI Investments: McDonald’s plans to enhance AI investments by 2027, aiming to improve customer experience.
- Loyalty Program Growth: The McDonald’s loyalty program has over 175 million active users across 60 markets as of late 2024.
McDonald’s Franchise Model in India
To start with, you cannot simply pick up the phone and call the headquarters of McDonalds in Chicago and request a franchise in India. McDonalds is a little different here. It employs the master franchisee concept.
- It can be considered as follows: McDonalds Corporation (the major US company) collaborates with two big Indian companies. These Indian corporations are then the sole rights to establish and run McDonalds restaurants in their respective areas.
McDonald’s in India (2025 Point of View)
- Expansion Plans: McDonald’s India aims to grow to 450 restaurants in the next three years, focusing on tier-2 and tier-3 cities.
- Local Adaptation: Beef and pork have been eliminated from the menu to cater to local dietary preferences.
- Technological Investments: McDonald’s is investing $100 million in a new global office in Hyderabad, planning to hire around 2,000 professionals by 2027.
- Menu Innovation: The introduction of the Protein PLUS slice in 2025 reflects McDonald’s focus on offering high-protein options to meet evolving consumer preferences.
How McDonald’s Operates in India
In India, the brand is operated by two major bodies, which are in charge of two geographical regions:
- Westlife Foodworld Ltd: This firm under the leadership of Mr. Amit Jatia operates all the McDonalds outlets in West and South India. Thus, in case you want to start a restaurant in Mumbai, Bengaluru, Chennai or Ahmedabad, you will be dealing with Westlife Foodworld.
- Connaught Plaza Restaurants Private Limited (CPRL): This is the company that handles all the operations of McDonalds in North and East India. CPRL is the place to contact in case your dream destination is in Delhi, Kolkata, Lucknow or Chandigarh. CPRL is a wholly owned subsidiary of McDonalds Corporation, which was initially a joint venture.
When you apply to be a franchisee, then, you are not applying to the global McDonalds brand but to one of these two master franchisees, depending on where you want to be located. They do all the work including approving your application, training and management of the supply chain.
Different Franchise Types
Whereas we merely observe a McDonalds, the company operates in various restaurant formats, which define prices and where the restaurants are located:
1. Standard Restaurants
Full-service stores offering the dine-in, take-away, and drive-thru type services.
- Locations: High-traffic areas like shopping malls, business complexes.
- Features: Full menu, large seating areas, suitable for reaching a wide range of customers throughout the day.
2. McCafe
Coffee shop-style outlets that are focused on high-quality coffee experiences.
- Features: Cozy, relaxing ambience; serves coffee drinks, light snacks, and confectionery.
- Setup: Can be part of existing restaurants or independent units.
3. McDelivery
Delivery-focused service for online orders.
- Features: Partners with food aggregators like Swiggy and Zomato and also uses McDonald’s own ordering app.
- Purpose: Expands the earning potential by reaching customers who prefer to eat at home or work.
4. 24 x 7 Restaurants
24-hour outlets in strategic locations.
- Locations: Metro cities, IT hubs, airports.
- Target Customers: Night-shift workers, students, travelers, and anyone needing meals at odd hours.
The most probable opportunity, the opening of a traditional restaurant, is the largest for most of the new franchisees, as it is the most widespread model of the McDonald expansion.
McDonald’s Franchise Cost in India – Complete 2025 Breakdown
What does it cost to start a McDonalds? This is a capital intensive business. The overall expenditure varies according to a number of factors such as the city, the location (high street or mall) and the size of the restaurant.
You will have to spend between 6 Crore and 14 Crore by the year 2025. This is what that money will cover:
One-Time Franchise Fee
When you open a McDonalds restaurant you have to pay an initial fee to the master franchisee (Westlife or CPRL). This fee entitles you to use the McDonalds brand name, trademarks and business model within a specified duration of time- normally 20 years. The deposit is not refundable. The present price is about 30 lakhs.
- Estimated McDonalds Franchise Cost Fee: Approximately ₹30 Lakhs.
Restaurant setup and interior
This is the biggest component of your investment. It includes the transformation of a shell into a working and comfortable place. What it comprises: Civil, flooring, false ceiling, furniture (tables, chairs, sofas), lighting, air conditioning, signage (including the big M!) and interior decor of international standard of the McDonalds. McDonalds is quite rigid on its design rules so that all the outlets appear and feel the same.
- Cost (Est): 2.5 crore to 5 crore.
Kitchen and store furniture
A McDonalds kitchen is a wonder of productivity. There is the price of all the specialized equipment required to prepare those world-famous fries, burgers and shakes. What it consists of: grills, fryers, refrigerators, freezers, preparation tables, exhaust systems, coffee machines, shake machines, and the point-of-sale (POS) billing system. This equipment is all standardized and has to be bought through authorized vendors.
- Approximate Price: 1.5 to 2.5 crore.
Licensing & Permits
You need to have the right licenses in case you want to operate a restaurant.
You need:
- FSSAI License (Food Safety and Standards Authority of India).
- GST Registration.
- Fire Safety Certificate (No Objection Certificate).
- Shop and Establishment Act License.
- License on Music.
- Other local municipal permits.
It ranges in price between 15 Lakhs to 30 Lakhs. The prices may vary according to the city and the complexity of approvals.
Initial Marketing & Branding Expenses
Even a large brand such as McDonalds begins locally.
This is what will be required:
- Grand opening (invite local and government people)
- Local newspaper, radio, digital media ad.
- Advertisements (menus, posters, signs, flyers)
- Preliminary branding efforts to make everyone aware that you are open.
New openings typically range in McDonalds franchise cost in India between 20 Lakhs to 50 Lakhs.
Total Setup Investment
When you add it all up, the numbers are significant.
Total Estimated Investment (2025): ₹6 Crore to ₹14 Crore
Cost Breakdown Table
| Expense Type | Estimated McDonalds Franchise Cost (₹) | Details |
| One-Time Franchise Fee | ₹30 Lakhs | Non-refundable fee for brand rights for 20 years. |
| Restaurant Setup & Interiors | ₹2.5 Crore – ₹5 Crore | Includes construction, furniture, decor, AC, and signage. This is the biggest cost. |
| Kitchen & Storage Equipment | ₹1.5 Crore – ₹2.5 Crore | All specialized cooking equipment, freezers, and billing systems from approved suppliers. |
| Licensing & Permits | ₹15 Lakhs – ₹30 Lakhs | FSSAI, GST, Fire Safety, and other local municipal clearances. |
| Initial Marketing & Branding | ₹20 Lakhs – ₹50 Lakhs | McDonalds franchise cost in India for the grand opening and initial local promotional activities. |
| Working Capital | ₹50 Lakhs – ₹1 Crore | Funds for initial staff salaries, inventory, and other operational expenses for the first few months. |
| Total Estimated Investment | ₹6 Crore – ₹14 Crore | The complete capital required to get the restaurant up and running. |
Ongoing McDonalds Franchise Cost & Royalties
Even after opening a new business, you do not have nothing to do every month. These bills maintain the doors open and the business on the road.
Monthly Royalty Fee:
This is the largest continuing expense. You pay a percentage of your monthly gross sales back to the master franchisee in exchange for continued use of the brand name and continued support (marketing, operational guidance and new product development).
- Estimated Fee: 4-5 percent of gross sales.
Therefore, when your restaurant is earning 50 Lakhs in a month, you would pay somewhere between 2 Lakhs to 2.5 Lakhs as a royalty fee.
Staff Salaries, Training, and Supply Chain Costs
- Staff Salaries: Salaries to your restaurant manager, crew, cleaners and security. An average McDonalds restaurant has 40 to 80 employees.
- Training: McDonalds is also renowned in terms of training that is world class. This setup will involve the initial franchisee training, but staff training will be an ongoing McDonalds franchise cost in India.
- Supply Chain: The price of all raw ingredients: buns, patties, vegetables, sauces, packaging and so on. McDonalds has an extremely efficient (and obligatory) supply chain. They have a list of vendors that they approve and you have to purchase all supplies through this network to have quality and consistency. Such expenses usually range between 30-35 percent of revenue.
- Rent: This will be one of your greatest monthly expenses unless you own the property. The rent of a prime commercial place where a McDonalds can be located can be very high.
- Utilities: The bills of electricity, water, and gas in a big commercial kitchen and dining room are high.
- Marketing Fund Donation: As well as doing your local advertising, you will make a percentage of your sales (usually about 4-5%) into a national advertising fund. This money is used to finance the large television ads and countrywide campaigns that are advantageous to all franchisees.
McDonald’s Franchise Profitability in India
How much profit do you expect to get after investing crores in a McDonalds franchise? The profit of a McDonalds restaurant is due to high sales and a tight management.
Average Monthly Revenue Range
The amount of revenue earned in a McDonalds outlet is relative to its location.
- Metro City (high-traffic area): 60 lakhs to 1.5 crore+ per month
- Tier-2 City (good location): 40 lakhs to 80 lakhs per month
- Tier-3 City/highway outlet: 25 lakhs to 50 lakhs a month
These are just estimates. A store that is well located and well run can generate more revenue particularly when it has a drive-thru and high delivery sales.
Expected Margin of Net Profit
Once you have paid all your McDonalds franchise cost in India raw materials, salaries, rent, royalties, etc, the net profit margin on a McDonalds franchise tends to be between:
- Margin of net profit: 10 % to 18 %
- Thus, a store with a monthly sales of 70 lakhs will have a net profit of 7 lakhs to 12.6 lakhs.
Break-Even Period
The break-even period is the period to repay your large initial investment. It is not a speedy process due to the high McDonalds franchise cost in India of setting it up.
- Approximate break even time: 3-5 years
This is based on the performance of the stores, location and the way you control costs. An extremely successful outlet can break even within 2 years whereas an average one can take longer.
Profitability Table by Location Type
| Location Type | Average Monthly Revenue (₹) | Estimated Monthly Net Profit (₹) (at 15% margin) | Estimated Annual Net Profit (₹) |
| Metro City (Prime) | ₹90 Lakhs | ₹13.5 Lakhs | ₹1.62 Crore |
| Tier-2 City | ₹60 Lakhs | ₹9 Lakhs | ₹1.08 Crore |
| Tier-3 / Highway | ₹40 Lakhs | ₹6 Lakhs | ₹72 Lakhs |
How to Get a McDonald’s Franchise in India (Step-by-Step)
Figures are factual however they should not frighten you. When you are ready to do it, here is a step by step process of applying to McDonalds franchise. Such useful words as how to get McDonalds franchise and McDonalds franchise apply will take you forward.
Step 1: Submit Online Application
You desire to open a McDonalds restaurant in your locality.
Make an initial display of interest. Visit the master franchisee site of your area and complete the franchise form. OR Go to McDonald’s India Franchise Inquiry Link: Initial Inquiry Form
The application form is elaborate. It requests your personal data, financial status and business experience.
Step 2: Financial & Background Check
In case the initial application is successful, the firm will conduct a thorough check. They will look through your financial records to ensure that you possess the funds required. They will also verify your net worth and your liquid assets. Lastly, they will conduct a complete background check to determine your business ability, reputation and management prowess. This phase normally involves multiple interviews.
Step 3: Location Selection & Approval
It is one of the most significant steps. You might already have a place in mind, but McDonalds has its own real estate team which applies sophisticated data analytics to identify promising places. They consider four primary things:
- Football: The traffic of people that pass on a daily basis.
- Visibility: The ease at which the restaurant is visible on the main road.
- Access: Accessibility, easy access, exit and parking.
- Demographics: The level of income and lifestyle of the population around.
You will consult with their staff to identify and acquire a location that fits their stringent requirements. The last place should be agreed upon by the company.
Step 4: Training & Operations Setup
After you choose a site, sign the franchise agreement and pay the fee, you will enter into a lengthy training period. Training is compulsory and comprehensive and typically takes several months. In the process, you will get acquainted with all segments of the McDonalds system including how to flip a burger, inventory, customer service and financial tracking. In most cases, the training occurs in one of McDonalds training facilities and an existing restaurant.
Once you have completed your training, you will assist a team to oversee construction, furnish the interior, and recruit employees. This puts your new restaurant in a position to have a grand opening.
To get the particular McDonalds franchise contact information in India, it would be advisable to begin with the above official websites since they provide the latest and direct channel of communication in contacting the franchise.
Requirements to Open a McDonald’s Franchise in India
McDonalds is selective in the franchises that it takes. The company does not just need money but also committed operators. These are the key requirements:
1. Minimum Investment & Liquid Capital
Total Investment: You require capital between 6 Crore to 14 Crore.
- Liquid Capital: A large percentage has to be in liquid form (cash, stocks, etc.). Usually, McDonalds requires you to have at least 30-40 percent of the total investment in liquid form which may be 2 Crore to 5 Crore in rupees. The remaining will be funded by bank loans.
2. Location Specifications
- Space: A conventional McDonalds restaurant needs a commercial space between 2,000 to 4,000 sq. ft. This ought to have provisions of the kitchen, dining room, bathrooms and storage. A drive through would demand more land.
- Footfall and Visibility: The place should be on a busy road, in a busy market, mall or commercial complex with good visibility and a constant flow of prospective customers.
3. Training & Operational Requirements
- Hands-On Involvement: McDonalds would rather have an owner-operator who is hands-on with the day to day operations of the restaurant. It is impossible to be a passive investor.
- Mandatory Training: You will have to pass through their intensive and extensive training program.
4. Experience Preferences
- F&B or Retail Experience: It is not always a requirement, but a prior experience in the food and beverage, retail or hospitality sector is a massive bonus.
- Business Acumen: It is also important to show a good history of running businesses, leading and managing teams, and financial management.
Pros & Cons of Owning a McDonald’s Franchise in India
Deciding to open a McDonalds restaurant is a large decision. It has its advantages and disadvantages.
Advantages
- An established brand. Many customers like and trust McDonalds.
- An established business concept. The company has taken decades to perfect its system.
- Powerful backing. The franchisees receive assistance in training, day to day running, supplies and marketing.
- Large revenue potential. McDonalds sells a lot and thus the earnings can be high.
- Assistance in real estate. The company provides guidance on how to locate the most ideal location of the restaurant.
Disadvantages
- Extremely high investment. Initial capital is one of the most expensive in the QSR (quick-service restaurant) industry, and thus many people cannot afford it.
- Excessive controls. Franchisees do not have much liberty. Menu items, wall colors and so on are determined by corporate rules.
- High recurring expenses. Profits can be significantly decreased by royalties and marketing fees.
- Stiff competition. The QSR industry is also saturated with other brands and in some cases other McDonalds restaurants in the area.
- Time-consuming and tedious procedure. The process of applying is tedious and competitive and there is no assurance of succeeding.
Alternatives to McDonald’s Franchise in India
In case a McDonalds appears costly, other fast-food restaurant (QSR) chains are available in the market that require less capital.
QSR Brands with lower cost
- Burger King: It is another global brand. The cost of purchasing a Burger King franchise ranges between 2.5 Crore and 5 Crore.
- Subway: Subway is famous for healthy food choices. The cost of opening a Subway franchise is 60 Lakhs to 1 Crore, which is one of the lowest international QSR franchises.
- KFC (Kentucky Fried Chicken): KFC is a giant among the fried-chicken companies. It requires approximately 2 Crore to 4 Crore to start a franchise of KFC.
Profitability Differences
Even though these alternatives are cheaper to enter, they do not make the same profit. McDonalds enjoys a premium due to its size and efficiency of operations which in most cases generate high revenues per store. Nevertheless, since brands such as Subway and Burger King are less expensive to start, they can break even quicker and pay back the money of the investor earlier, which may be attractive to individuals with less money to spend.
Conclusion – Is McDonald’s the Right Franchise for You in 2025?
A McDonalds franchise cost in India is a prestigious and very profitable business to own. You are collaborating with a world leader, which has a system that has been tested and tested. Its strong ties to the Indian market, localized menu, and strong marketing machine make the brand a force to reckon with in the market.
Nevertheless, it is not a choice that should be made lightly. It takes a great deal of financial muscle, a commitment that is long-term, readiness to work within a strict system and love of the fast food service industry. It is a heavy investment and the road to profitability is long and needs patience and operational excellence.
Then is it the right one to you?
- In case you have access to a large capital ( 6 Crore+), good business background and want a long term high revenue business with a blue chip brand, then yes, McDonalds is the golden opportunity you are seeking.
- In case your budget is not so high, or you would like to have more control over the creativity and a quicker payback after investing less money, then it may be more feasible to consider other options such as Subway, Burger King, or other domestic QSR chains.
The final choice is dependent on your financial ability, risk tolerance and individual business objectives. Research, talk to financial experts and be truthful with yourself in regard to whether you meet the profile of a McDonalds franchisee. Do it and you may well find yourself proudly operating a section of one of the most iconic success stories in the world.
FAQs
1. Is it possible to open a McDonalds in a small town or in a Tier-3 city?
It can be. McDonalds will be establishing in smaller cities but they will carry out an analysis of the market potential, population and income levels of the town before they can approve a site.
2. Do I necessarily have to have previous experience in a restaurant?
F&B experience is very desirable, but not a deal-breaker. You can be considered provided you have a good background in business management, operations, and finance and you pass their intensive training.
3. So how much liquid cash should I really show?
You typically must have an amount of the total project cost of at least 30-40 percent in un-borrowed, liquid funds. In a 7 Crore project that would be around 2.1 to 2.8 Crore in cash or readily marketable assets.
4. Does McDonald’s assist in obtaining bank loans?
Although McDonald does not actually finance, the quality of their brand makes it very easy to obtain business loans through banks. Their project report and your franchise agreement will be of much weight with lenders.