McDonald’s is a leading fast food joint in the world today, aided by its easily recognisable golden arches. The brief history of McDonald’s in the Indian market: It opened its first restaurant in India in 1996, and since then, Indians have had fast food—localised for vegetarians as well as non-vegetarians. It currently offers its services in more than three hundred outlets all across the country and is one of the most competitive chains of fast food.
In an emerging fast-food market, the opportunity to obtain a McDonalds Franchise in India is the best way for businesspersons. Thus, by experience, support and brand recognition, It’s Franchise can be very profitable to franchisees. This blog will give you the McDonald’s Franchise Cost in India in 2025 and guide you through the application process, potential profit, and important factors to consider for success.
About McDonalds
Feature | Details |
Founded | 1940 |
Founders | Richard and Maurice McDonald |
Headquarters | Chicago, Illinois, USA |
Industry | Fast Food |
Global Presence | Over 39,000 outlets in more than 100 countries |
First Outlet in India | 1996, Mumbai |
Number of Outlets in India | 600+ |
Famous Products | Big Mac, McChicken, McFlurry, French Fries, McAloo Tikki |
Initial Investment | ₹6–14 crores (approx., varies by location and outlet type) |
Franchise Fee | ₹30 lakhs (approx.) |
Royalty Fee | 4–5% of gross sales |
Key Competitors | Subway, Burger King, KFC, Domino’s Pizza |
The Beginning of McDonald’s in India

The fast food industry in India started in 1996 when McDonald’s opened its franchise in the country. The issue was unique in the Indian context as the country has a very different culture, eating habits and also a very different However, The brand is a firm that understood a niche for modifying its international strategy to fit the local Indian taste buds.
At first, McDonalds launched a menu that was friendly to the local palate, and this included no meat and many vegetable products. McDonald’s established a powerful brand image which is a uniform brand image across all its fast food and suppliers food items in its particular outlets sought from local producers for better quality and freshness.
To start operations in India McDonald’s franchise decided to form 50-a 50 joint venture with two Indian Companies: Connaught Plaza Restaurant Limited (CPL) managing its operations in North & East India and Hardcastle Restaurants Pvt Ltd (HRP) in the West & South regions of the country. This partnership enabled the brand to expand quickly and effectively in the early years. By localizing the menu, introducing India-specific products, and maintaining international standards, It quickly became a favourite in the Indian fast-food market.
Why Choose McDonald’s?
Choosing McDonald’s as a franchise partner comes with multiple advantages. Despite the significant McDonalds Franchise in India, the brand’s global recognition, proven business model, and comprehensive support make it an attractive investment opportunity. Here’s why McDonald’s stands out:
- Global Brand Recognition: The brand image of it is one of the most recognizable in the world customers’ traffic and guarantees high sales opportunities.
- Proven Business Model: In other words, Its serves one type of food that is almost universally recognized and which ensures conformity and, therefore, prosperity.
- Comprehensive Support: McDonald’s says it offers support in areas such as training, marketing and merchandising, supply chain management and many others to ensure franchiser success.
- Adaptability: Thus, the brand has modified its menu fully in terms of adapting to the Indian market and its products can be easily accepted by almost anyone.
- Marketing Power: It’s pays a lot of attention to both national and local campaigns and this is always on the advantage of franchise units since they are accorded maximum visibility and hence able to sell more products.
- Consistent Product Quality: The brand is reputed for a high standard in the quality of foods served to its customers.
- Sustainability: Sustainability and innovation are the absolute strategies that successfully correspond with modern consumers and increase franchisee profitability.
Nonetheless, the McDonald’s franchise cost in India may be slightly higher than in many countries, but the support offered by the brand, the sure prospects, and the popularity of the fast-food restaurant make the venture a very profitable and safe investment for franchisees.
McDonald’s Franchise Cost in India
Its operating in India follows a franchise system that involves staggering investment but carries high returns since McDonald’s supports through organizational expertise, brand image and consumer loyalty. The total investment required for a McDonalds Franchise showroom In India 2024 is about INR 6 Crore to INR 15 Crore. This cost can be fixed based on several parameters including its location, type of outlets, and cost of the premises.
In return, franchisees get value-added services from the brand that include training, marketing, and operational services. Below is a detailed breakdown of the various components that contribute to the total franchise cost.
Breakdown of McDonald’s Franchise Cost in India
Cost Component | Details | Estimated Cost |
Franchise Fee | One-time, non-refundable fee to use its brand and operations, including training and support | INR 30 Lakh to INR 60 Lakh |
Real Estate and Property | Cost of leased or purchased property, which varies based on location | INR 2 Crore to INR 5 Crore |
Retail Space | Space requirement: 1000 – 1500 sq. m for standalone restaurants and 500 – 700 sq. m for kiosks | – |
Fit-out Costs | Interior building, signage, kitchen equipment, etc. | INR 2 Crore to INR 5 Crore |
Supply Chain and Equipment | Kitchen equipment, furniture, and food items from recommended suppliers | INR 50 Lakh to INR 1 Crore |
Marketing and Advertising | Contribution towards local and national marketing and promotions | 3-5% of monthly sales |
Royalty Fees | Monthly royalty fee for using the the brand and operational support | 4-6% of monthly sales |
Here’s a detailed look at what the total franchise investment covers:
Franchise Fee
The amount that one pays as a cost to join the McDonald family is an average of INR 30 Lakh to INR 60 Lakh. This fee beneficently gives you legal permission to use its images, processes and indeed the physical assets of the company. This is normally a one-time, non-refundable fee that helps to cater for first-time training, establishment at the new location and debut support.
Real Estate & Property Costs
Franchise fast-food restaurants’ physical location is among the most critical factors. The cost of a McDonalds Franchise in India depends on where you decide to open your outlet or franchise. It targets densely populated areas because of the heavy traffic of people in areas close to shopping malls, business entities and business centres in cities. The next step requires a physical space that could come in the form of a leased or purchased property which costs approximately INR 2 Crore to INR 5 Crore based on location and city.
- Retail Space: The company needs 1,000 – 1,500 sq. m. of space for standalone restaurants and at least 500 – 700 sq. m. for planned kiosks and drive-thru restaurants.
- Lease/Buy Agreement: To establish AA’s operations you will need to sign an agreement to lease or buy property with property owners. McDonald’s generally tends to acquire long-term leases, which are favourable for frequent operations.
Fit-Out Costs
The fit-out costs include building of restaurant interior, read MORE Equipment installation, furnishing, signage and many others. Generally, the fit-out costs come between INR 2 Crore to INR 5 Crore, depending on the size and type of outlet; it may include possible Drive-thru, kiosk, or dine-in sectors. There is some regulation of the arrangements and design of the stores, to provide uniformity across the franchise.
Supply Chain and Equipment
An important aspect of the McDonalds Franchise in India is that the franchisee is under obligation to procure utensils, furniture and food items from the recommended suppliers only. The initial expenses that an individual faces to procure the kitchen equipment, signages, furniture and inventory vary from 50 Lakh to 1 crore Indian rupees. This also includes the firsts such as stock foods, packaging materials and beverages, all obtained from the McDonald’s supply chain.
Marketing & Advertising
While it’s has its own national and international advertising campaigns, local marketing is important for the success of the franchise. The franchisees must pay the franchisor 3-5 % of the monthly sales, which is a contribution towards local advertising. This includes promotions on social networks, local performances and advertisement special discounts to capture the clients.
Royalty Fees
McDonald’s has royalty fees payable on a monthly basis and 4-6% of the gross sales amount. This fee also includes the marketing and brand management fees worldwide, together with the marketing research and development fees the company spends to support the brand.
McDonald’s Franchise Profit in India
With McDonald’s franchise cost in India, there is a lot of potential to make profits but it all depends on the place, management and effectiveness. Normal franchise owners can expect the average outlet sales of a burger to be between Rs.200000 to Rs.600000 each month with some special outlets doing even more.
- Revenue Potential: When the locations themselves are popular or in high trafficking areas such as malls or the best areas in town then the sales can be high.
- Breakeven Period: It normally takes a franchise unit 5 to 7 years to break its cost of investment depending on the sales ability of that unit and market conditions.
The brand’s ability to attract a broad range of customers—from office workers to families—ensures steady footfall, and brand extensive support system helps maintain operational standards that can drive profitability.
McDonald’s Franchise vs. Competitors: Burger King, KFC, and Domino’s
McDonald’s vs Burger King
Both brands are recognized as leading fast food services worldwide With McDonalds overall franchise in India, it yields a better result than Burger King cost of the time as it entered early into the country with higher brand awareness and has a larger menu to cater to local palate than BK.
- Initial Investment: Burger King’s franchise cost in India usually means that they will need to invest a certain amount more than McDonald’s but they get a lot less in terms of support and service and of course, more people will remember Mcd’s fast food chain than Burger King.
- Market Share: McD India franchise owns a greater market coverage in India and has over 300 effective stores more than Burger King. McD operates mostly in tier one and tier two cities in the country.
Aspect | MCD | Burger King |
Franchise Cost | McDonald’s franchise cost in India is INR 6 Crore to INR 15 Crore | Slightly higher |
Brand Recognition | Higher brand recall, greater market coverage | Lesser compared to McDonald’s |
Menu Diversity | More versatile, catering to vegetarians and non-vegetarians | Focus mainly on non-veg items |
Market Share | Over 600 stores across India | Fewer stores than McDonald’s |
McDonald’s vs KFC
Another real competitor in the Indian fast-food segment is KFC, even though the company focuses mainly on chicken products. Although KFC Franchise has a much wider market presence, McDonald’s is more versatile because it offers a great variety of meals, vegetarian included. McD also has set and functional channels for delivering and online ordering of meals.
- Vegetarian Options: Globally, there are even more vegetarian offerings that McD has compared to KFC, which is quite popular in India where people eat little meat.
- Franchise Fees: The initial investment to open a McD outlet in India is comparatively more than KFC while Mc provides more brand funds and coaching in the operations.
McDonald’s vs Domino’s
Currently, Domino has considerably flourished in the Indian pizza segment with a similar pricing strategy to McD. But McDonald’s menu is larger in variety with both vegetarians and non-vegetarians to cater with equally a large group of consumers.
- Revenue: McD franchise owners and Domino’s franchise owners can make good business returns, however, McDonald’s system has a wider choice of products and a more well-known brand name which means higher sales in some outlets.
- Franchise Costs: The overall franchise costs at Domino’s are usually lower than at McD’s although McDonald’s franchise requirements undoubtedly provide more extensive brand support and operational help.
How to Apply for McDonalds Franchise in India
Now that you know McDonalds Franchise in India, it is time to know about how to open a McDonalds Franchise in India, it is important to follow a well-structured process to ensure you meet all your requirements. Here’s a step-by-step guide to getting started:
Initial Inquiry
First, go to McDonald’s India official site or directly get in touch with the team. The application process starts with the McDonald’s franchise department which will give you the general information that you need and offer an application.
Eligibility Check
Thus, the brand has certain strict requirements for its potential franchisees. Some of those criteria include the financial capacity of the candidates, experience in running any business and agreement to abide by the operational structures of the company. Normally the restaurant requirements of it’s mean that it’s looking for franchisees with a liquid capital of at least INR 1.5 Crore.
Submit Your Application
Once you know all the necessary franchise costs of McDonald’s in India, you’re free to fill in the application form with necessary information such as your business plan, financial statements, and preferred site. McD will assess your fit as a franchisee.
Training and Support
As mentioned earlier, McDonalds lets partners operate outlets after approval of their application, but they also offer an elaborate training program to run the McDonald’s business, including the kitchen and customer relations. It also provides various services in the development phase throughout the life cycle of the franchise.
Conclusion
Where better to invest than a McDonalds Franchise in India in 2024, as it holds great promise in terms of business returns? Although McDonald’s India franchise cost varies between INR 6 Crore to INR 15 Crore; this amount is backed up by a McD brand name, operational support and Marketing. Currently, there are more than three hundred outlets in the McDonald’s franchise and thus the company has been able to demonstrate a flexible policy in addressing the requirements of the local markets.
However, the initial cost is compensated by McDonalds, which guides the franchisee on matters of training and supply as well as marketing for the restaurant thus making it easy for the franchisee to run it effectively. As a concept, franchisees are likely going to reap constant cash inflow and often break even within five to seven years subject to location and management. Being a franchise and having shown a successful format, The brand gives many people an opportunity to start their businesses in fast food and be confidently supported.
Frequently Asked Questions (FAQs)
What is the McDonald’s franchise cost in India in 2024?
The total franchise cost required to open a McDonalds restaurant varies in India in the year 2024, which is predicted to be between INR 6 Crore to INR 15 Crore which mainly includes the type of its outlet, location real estate cost etc.
What are the current royalty fees for a McDonald’s outlet in India?
Royalty fees are usually assessed on an ongoing basis and would currently lie between 4-6% of total monthly sales. There may also be an additional addition to the local marketing fees may also be made.
Can I open a McDonalds franchise in any city in India?
McDonald’s in general focuses their site selection on first-tier and second-tier cities with large customers’ flow and consumption needs for fast foods. It should meet it’s requirements of the location you selected.
What kind of return should I anticipate making from owning a McDonalds franchise in India?
The profitability differs, however, prospective franchisees can anticipate gross monthly revenues of INR 20 Lakhs to INR 60 Lakhs depending on the location, extent of effectiveness in operation, and the volume of patrons visiting the restaurant.