McDonald’s does not only represent any fast food chain but a worldwide brand that is in demand in India, together with its menu favourites, McAloo Tikki, Maharaja Mac, and Masala Wedges.McDonald’s has grown to more than 350 restaurants in leading cities and tier-2 towns since it introduced its first outlet in 1996 and has become a popular destination to obtain quick, inexpensive, and uniform foodstuffs.
In 2025, the business involving a McDonald’s franchise in India is a desirable venture. McDonald’s has a good brand value, a smooth supply chain, and a customer base that is loyal, which makes it attractive not only in terms of prestige but also has high returns in the long term.
In this blog, we will explore McDonalds Franchise Cost in India, along with its requirements and profit potential. This blog is just a guide to get you started.
Brief overview of McDonald’s presence in India
McDonald’s restaurants started with a simple drive-in restaurant in 1940, located in San Bernardino, California, and currently it is a multinational fast-food chain with more than 38,000 restaurants and spread over 100 nations. It has approximately 93 per cent franchised restaurants in which operators are independent owners and retain the core values of its brand, being quality, affordable, and fast service.
Within India, the brand was launched in 1996; however, it had to deal with the challenge of supporting a country with multiple cultures, culinary preferences, and religious sensitivities. McDonald’s struck back by localising its menu by taking off beef and pork and introducing vegetarian favourites such as McAloo Tikki Burger, and using locally available suppliers to ensure the freshness of the menu.
Its operations in India are divided into the two biggest partners in the North and East, with Connaught Plaza Restaurants Ltd. and the West and South with Westlife Foodworld Ltd. This strategy has aided McDonald’s in the expansion of its stores to 397+ outlets across the country, with a good presence in metros, tier 2 cities, highways, and airports. India is poised to have a 7.76 trillion food service industry by 2028, which means that McDonald’s will continue to remain a profitable and highly coveted franchise business in the given context in India.
Why McDonald’s franchises remain a popular investment
McDonald’s is a renowned brand all over the globe, and achieving success in India has only increased the value of the brand among investors. A combination of brand power, proven business systems, and a steady customer demand makes it a sound but profitable, long-lasting investment.
- International Name recognition: The golden arches are recognisable by millions of customers all over the globe and are trusted by them.
- Strong Customer Base in India: The seven decades of localised menu innovation have resulted in a strong following by customers of all ages and income groups.
- Established Franchise System: McDonald’s boasts of a tried and tested system in terms of training, market, and supply chain management, as 93 per cent of the outlets across the world are franchises.
- High Footfall Locations: Outlets are strategically placed in malls, highways, airports, and busy city centres, ensuring consistent sales.
- Resilience in Economic Fluctuations: Affordable pricing helps maintain customer traffic even in slower economic periods.
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McDonald’s Franchise Model in India
McDonald’s has several formats of business in India that enable it to adapt to various market dynamics of the country and meet different requirements and investment levels. This is a flexible model that enables the brand to reach new locations that are not necessarily in the big cities but in highway passes, not to mention spaces in the central business districts. The model also provides choices to franchisees depending on their financial and operational objectives.
Standard restaurants
These are full-service stores that are best known to be usually dine-in, take-away, and drive-thru stores. The latter are usually in areas that attract large traffic, including shopping malls, business complexes, and major transport points. Standard restaurants with their full menu and big seating areas are good to reach a wide range of customers during the day.
McCafe
McCafe was introduced to satisfy the increasing demand of Indians in terms of high-quality coffee experiences. It has a coffee shop-like ambience with a cosy, relaxing environment. This menu presents different coffee drinks, confectionery, and light snacks. McCafes could be incorporated in the existing restaurants as a part of the McDonald’s chain to expand their lines, or could also be established as independent units to attract coffee fans.
McDelivery
Since online ordering and food delivery are exploding in India, McDonald’s has established a powerful McDelivery in India. The service allows franchisees to target customers who would like to eat in the comfort of their abode or places of work. McDelivery provides a large extension to the earning potential of a store by tying up with food aggregators such as Swiggy and Zomato and having its ordering app i.e. McDonalds as it ties up with food aggregators such as Swiggy and Zomato and uses its ordering app i.e. McDonalds.
24 X 7 Restaurants
McDonald’s has opened 24-hour shops in strategic regions like metro cities, IT cities, and airports in order to cater to the late-night and early-morning customers. These premises appeal to the night-shift workers, students, travellers, and other people looking to get meals at odd hours.
McDonalds Franchise Cost in India – Complete 2025 Breakdown
The cost of opening a McDonald’s franchise in India depends on various factors, such as franchise format chosen, outlet size, and location.
Given below is a cost breakdown of McDonald’s franchise costs in India:
One-time franchise fee
This is the initial franchise fee, which is taken for the right to operate under its brand name. The estimated cost of a McDonald’s franchise in India is INR 30-40 lakh.
Restaurant setup & interiors
This includes costs such as buying property, restaurant design, interiors, furniture, POS systems, and customer seating. It varies around INR 4.5-5 crore, depending on outlet size and complexity.
Kitchen & storage equipment
This includes cooking equipment, refrigeration units, storage facilities, and specialised machinery required to meet McDonald’s global standards. The estimated cost is added to the setup cost above.
Licensing & permits (FSSAI, GST, fire safety)
Franchisees must secure mandatory approvals like FSSAI licenses, GST registration, and fire safety clearances. The estimated cost is around INR 5-10 lakh.
Initial marketing & branding expenses
This includes launch campaigns, local advertising, outdoor branding, and promotional offers. The estimated cost is around INR 10-15 lakh.
Working capital
These are the funds that are used to cover salaries, utilities, inventory, and marketing during the first few months of operation. The estimated cost is around INR 30-50 lakh.
Total setup investment
The total cost usually ranges between INR 6.5 crore and INR 14 crore, depending on format and location.
Cost breakdown table:
| Expense Type | Estimated cost (INR) | Details |
| Franchise Fee | 30-40 lakh | One-time payment for brand rights & systems |
| Initial setup and interiors | 4.5-5 lakh | Furniture, design, interiors, POS systems |
| Kitchen and storage equipment | Included in setup cost | Cooking, refrigeration, and storage units |
| Real estate and construction | Varies by location | Lease or purchase cost of the property |
| Licensing and permits | 5-10 locations | FSSAI, GST, and fire safety approvals |
| Initial marketing and branding | 10-15 lakh | Launch campaigns, local advertising |
| Working capital | 30-50 lakh | Salaries, utilities, inventory, promotions |
| Royalty fees | 4-5% of gross sales | Ongoing monthly payment to McDonald’s |
| Advertising fees | 4% of gross sales | National and regional marketing fund |
Ongoing Costs & Royalties
Besides the initial cost of establishing the business, the franchisees of McDonald’s also need to factor in ongoing running costs that are essential in the day-to-day smooth running of the business and the maintenance of the McDonald’s brand. These include:
Royalty fees
McDonald’s charges its franchisees 4-5 per cent on their gross monthly sales as royalty. This amount is used to maintain access to the McDonald brand, tried and tested systems of operation, and, in this way, they continue to receive support in other aspects such as quality control, training, and marketing.
Advertising fees
McDonald’s demands franchisees to give around 4 per cent of monthly gross profits to national and regional advertising initiatives. This collective marketing resource sponsors TV marketing, internet advertising, viral marketing, outdoor branding, and other programs that would facilitate the high profile of the brand and its ability to attract customers.
Staff Salaries & Training
The actual number of employees needed to operate a McDonald’s outlet ranges between 20 and 30 per cent, depending on the size and location of the outlet. Salaries, benefits, and ongoing training of staff to keep their skills at the level of McDonald’s service may cost between 6 and 10 lakh a month.
Supply Chain & Inventory Costs
All the ingredients and packaging should be provided through McDonald’s authorized suppliers. Inventory costs have a tendency to change on a monthly basis depending on sales volume, and they can be up to 30-35 per cent of gross revenues.
McDonald’s Franchise Profitability in India
McDonald’s franchise is not a small investment, and it has a potentially high degree of profitability for individuals who have clear insight into how to operate it and select an appropriate site. Although precise profits differ among stores, the profitability level is based primarily upon three components:
- Location: Malls, prime commercial streets, and transport hubs, among others, have high traffic, which can be very helpful in selling.
- Management Efficiency: It has strict cost control, well-structured operations, and excellent employee relations that ensure that it maximizes the profits that are earned.
- Market Insights: It is necessary to adjust to the local tastes, review the local competition, and conduct localised promotions to maximise revenues.
A McDonald’s outlet that falls in an ideal location where they have good operation management can have healthy returns within a stable period.
| Factors | Details |
| Average annual revenue | INR 2-6 crore per outlet (varies by location) |
| Gross profit margin | 10-20% |
| Annual profit (Avg.) | INR 2.6 crore (approx.) |
| Break-even period | 3-4 years (best case)/ 4-6 years (average case) |
How to Get a McDonald’s Franchise in India (Step-by-Step)
Step 1: Submit online application (McDonald’s franchise application)
Go to the official site of McDonald’s in India and specify the franchise application form. Submit your personal information, business experience, and resources to invest.
Step 2: Financial & background check:
McDonald’s will perform an extensive assessment of your financial capacity, creditworthiness, and previous business exposure in order to determine that you are worthy of their requirements.
Step 3: Location selection & approval
Collaborate with the McDonald’s team to be in a position to determine and conclude on an appropriate position. Before approval, the site is analyzed on the basis of visibility, accessibility, and the potential number of customer traffic.
Step 4: Training & operations setup
Work with the McDonald’s team to identify and finalise a suitable location. The site is assessed for visibility, accessibility, and customer traffic potential before approval.
Requirements to Open a McDonald’s Franchise in India
- Financial Requirements: Strong financial capability with substantial liquid assets and the ability to secure funding for setup and operational costs.
- Business Experience: Prior experience in food service or business management preferred, though not mandatory; strong work ethic is essential.
- Commitment to McDonald’s Values: Must uphold McDonald’s core principles of Quality, Service, Cleanliness & Value (QSC&V).
- Location Suitability: Site must meet McDonald’s standards for visibility, accessibility, foot traffic, and market potential; subject to company assessment.
Contact Details for McDonald’s Franchise in India
If you’re seriously considering becoming a McDonald’s franchisee in India, the first step is to connect directly with the official McDonald’s India team.
McDonald’s India Franchise Inquiry Link: Initial Inquiry Form
Pros & Cons of Owning a McDonald’s Franchise in India
Pros
- Good Brand Recognition and Customer Trust: McDonald’s is a household brand name in the world, and Indians have had decades of trust based on the same. This immediately minimises the ordeal of starting the awareness device craze square, which is originally anything.
- Tested Business Model: The franchise model is extensively developed, and business processes, business marketing, and supply chain processes are well defined, leading to minimisation of risks in the type of business.
- Comprehensive Training & Support: McDonald’s has the best training programs in place that ensure a person is trained in every aspect of operations and duties, along with staff management, marketing, and customer service.
- Excellent Locations with High Revenue Potential: The stores in metro cities and areas with high traffic will yield high sales volumes, resulting in good long-term profitability.
Cons
- High Initial Cost: It may cost between 6 crore and 14 crore to set up a McDonald’s outlet in India, a nd therefore it would be a high entry cost, leaving only those investors who are financially strong.
- Continuous Royalties: Every franchisee pays ongoing royalties (4-5 per cent of gross sales) and advertising contributions (~4 per cent of gross sales), which have a negative influence on the net profitability.
- Rigid Operational Guidelines: McDonald’s has very strict guidelines on what is on the menu, how the brands are procured, how the stores are to be designed, and how they are to operate, and there is not much space to be creative or to deviate in any manner.
- Increased Break-even Period: Franchisees tend to need 4 6 years to break even, depending on location and efficient management, because of the high cost of investment.
- Dynamic QSR Environment: Indian quick-service restaurants have a competitive environment with a mixture of global and local players, thus ensuring regular improvisation and customer interaction are crucial elements in ensuring market share.
Alternatives to McDonald’s Franchise in India
McDonald’s is a good brand with a prestigious name, but it needs high investment and takes a longer time to break even as compared to a few other alternatives, such as Quick Service Restaurants (QSRs) in India. The following will be competitive alternatives in the event of investors who want to pay minimal entry fees or have a quicker ROI:
| Brand | Approx Investment (INR) | Royalty fee | Average annual Revenue | Break-even period |
| Burger king | INR 2.5 – 3.5 crores | 4% | INR 1.5 – INR 3 crores | 3-5 years |
| Subway | INR 80 lakhs – 1 crore | 8% | INR 60 lakhs to 1.2 crore | 2-3 years |
| KFC | INR 1.2 to 2.5 crore | 5% | INR 1.5 – 3 crores | 3-5 years |
Conclusion – Is McDonald’s Franchise in India Right for You in 2025?
McDonald’s franchise in India is not merely an Indian business opportunity; it is a long-term investment made in one of the strongest QSR brands in the world. McDonald’s has the advantage of a fully-established brand, real estate mechanisms, and stable clientele needs that give the company and their franchisees a chance of generating high returns. But it also needs a lot of capital and a plan for where to place the stores, as well as operational excellence to be successful.
In case you possess the monetary capacity, company skills, and the commitment to maintain the global McDonald’s standards, 2025 can be the ideal moment to enter this commercial enterprise. The situation when one has a smaller budget or wants to get the ROI quicker may find it more sensible to investigate other QSR restaurants, either in the manner of Burger King, Subway, or going directly to KFC.
The decision should be based on your ability to invest and the research on the market, combined with the vision of business development, but there is one thing that is not doubtful: McDonald’s is always a golden chance for those who are ready.
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FAQs
How much does the franchise cost in India?
The McDonalds Franchise Cost in India ranges between 6 crores and 44 crores of investment, depending on the type of outlet, location, and size, but does not include royalties and operating expenses continuously.
Is it worth starting a McDonald’s franchise in India?
Yes, indeed, provided you carry the necessary capital, management team, and an optimum store location, McDonald’s has good brand appeal and a constant demand. However, assess other options when you have a small budget or desire ROI within a shorter time.
What is the break-even point of owning a McDonald’s franchise in India?
Usually 5 7 years, based on the performance of given locations, effectiveness within the operations, and market dynamics.
Am I allowed to have more than a single outlet?
Yes. Many of the franchisees build multiple stores after the initial outlet is profitable; however, this means that McDonald’s must approve the new outlet, and further investment is necessary.
Does McDonald’s assist marketing in India?
Yes, McDonald’s maintains nationwide and regional advertising campaigns that are financed by an advertising fee given by all franchisees every month, sis resulting in great brand exposure.