MCDONALD'S PHILIPPINES | Philippine Franchise

To obtain a McDonald's Philippines franchise, you must be a Filipino or former natural-born Filipino citizen and meet specific requirements. The franchise is granted on a per-restaurant basis, not by territory. Applications for both site selection and the franchise are processed independently. The franchise term is 10 years or the length of the lease, whichever is shorter.

Here's a more detailed breakdown:

1. Eligibility:

Filipino Citizenship: You must be a Filipino citizen or a former natural-born Filipino citizen.  Business Experience: McDonald's considers candidates with business experience, a history of success, and the ability to work well with the franchisor.  Financial Resources: You need significant capital to invest in the franchise, which includes both a franchise fee and the cost of building or acquiring a restaurant.

2. Franchise Options:

New Restaurant: McDonald's may award franchises for new sites or restaurants.  Existing McDonald's Restaurant: Franchises may also be awarded for existing company-owned restaurants or restaurants owned by franchisees who wish to sell.  Site Selection: You will need to find a suitable location for your McDonald's restaurant and submit an application to McDonald's for site approval.

3. Cost of Investment:

CAPEX: The capital expenditure for a McDonald's restaurant can be significant, estimated at around $1 million USD (or the Philippine Peso equivalent at the time of construction). This includes architectural planning, Global Design Fees, and other construction-related costs.  Franchise Fee: There is a franchise fee that you need to pay in addition to the investment required for the restaurant.  Other Costs: Other costs include initial store supplies, initial merchandise, construction costs, and advance rent and deposits.

4. Application Process:

Contact McDonald's: You can visit the McDonald's Philippines website to learn more about franchising opportunities.  Submit Application: Apply for both site selection and the franchise separately.  Due Diligence: McDonald's will conduct due diligence to evaluate your qualifications and the suitability of the proposed site.

5. Key Considerations:

Real Estate: McDonald's has specific requirements for the size, frontage, and location of restaurants.  Business Plan: You'll need a well-defined business plan that demonstrates your understanding of the McDonald's business model and your ability to operate a successful restaurant.  Franchisor Support: McDonald's provides support to franchisees, including training and guidance on various aspects of the business.

The master franchise holder for McDonald's in the Philippines is Golden Arches Development Corporation (GADC). GADC is owned by George T. Yang, a Filipino-Chinese businessman. He also heads 16 other companies in the Philippines.

Key points:

GADC: Golden Arches Development Corporation is the master franchise holder, meaning they have the right to operate McDonald's restaurants in the Philippines and also sub-franchise them.  George T. Yang: The owner of GADC is George T. Yang, who has been the master franchisee since 1981.  Family Ownership: The Yang family, including George T. Yang and his son Kenneth S. Yang, are the majority owners of McDonald's Philippines.  100% Filipino-Owned: McDonald's Philippines, through GADC, is a 100% Filipino-owned company.  Joint Ventures: Some McDonald's restaurants in the Philippines are operated by affiliates through joint venture agreements with GADC.  New Franchise Term: GADC, along with George and Kenneth Yang, recently secured a new 20-year franchise term in the Philippines, extending their operations until 2045.

The total initial investment to franchise a 7-Eleven in the Philippines can range from Php 3.5 million to Php 5 million. This includes a franchise fee of Php 600,000, plus costs for initial store supplies, merchandise, building construction, and advance rent/deposits.

Here's a more detailed breakdown:

Franchise Fee: Php 600,000 Initial Store Supplies: Php 170,000 Initial Merchandise: Php 800,000 Construction Cost: Approximately Php 2.03 million Advance Rent and Deposits: Variable depending on lease terms Total Cash Outlay (estimated): Php 3.5 million to 5 million

It's important to note that these are estimates, and the final cost may vary based on the location, lease terms, and other specific factors. The franchise term is typically 5 years, according to the Philippine Franchise Association.