If you’re considering investing in a fast-food franchise in India, McDonald’s is likely among the top names on your list. With its global reputation, standardized operations, and vast menu that adapts to Indian tastes, McDonald’s offers one of the most recognizable and profitable franchise opportunities. But the big question is: How much does a McDonald’s franchise cost in India?
In this article, we’ll explore the McDonald’s franchise cost in India, eligibility, franchise models, potential profits, and how you can apply.
Overview of McDonald’s in India
McDonald’s entered the Indian market in 1996 and has since become a household name. Unlike other countries, McDonald’s India operates through two major franchise partners due to regional segmentation:
- Westlife Foodworld Ltd. (for South and West India) – operates under Hardcastle Restaurants Pvt. Ltd.
- Connaught Plaza Restaurants Pvt. Ltd. (CPRL) (for North and East India)
As of 2025, McDonald’s has over 350+ outlets in India and continues to expand rapidly in metros, Tier 2 and Tier 3 cities.
Types of McDonald’s Franchise Models in India
McDonald’s India offers multiple business formats depending on the location and size:
- Traditional Restaurant
- Located in malls, standalone buildings, or high streets.
- Full-service dine-in or takeaway options.
- Satellite Locations
- Kiosks or smaller outlets in airports, stations, corporate parks, etc.
- Drive-Thru Restaurants
- Requires larger space and high vehicle traffic areas.
McDonald’s Franchise Cost in India (2025)
Owning a McDonald’s franchise in India is a high-investment business. Here’s a breakdown of estimated costs:
| Expense Category | Estimated Cost (INR) |
| Franchise Fee (one-time) | ₹30 – ₹40 lakhs |
| Infrastructure Setup | ₹50 – ₹70 lakhs |
| Equipment & Machinery | ₹20 – ₹30 lakhs |
| Staff Hiring and Training | ₹5 – ₹7 lakhs |
| Inventory & Supplies | ₹5 – ₹10 lakhs |
| Marketing & Launch | ₹3 – ₹5 lakhs |
| Working Capital | ₹10 – ₹15 lakhs |
| Total Investment Range | ₹6 crore – ₹14 crore |
📝 Note: The investment varies based on city, format, and property costs. Metro cities will cost more due to higher rentals and land values.
Franchise Fee, Royalty & Agreement Terms
- Franchise Fee: ₹30–₹40 lakhs (approximate)
- Royalty Fee: Around 4%–5% of gross sales
- Marketing Contribution: 4% of monthly sales
- Franchise Term: Usually 20 years, renewable
Eligibility Criteria to Own a McDonald’s Franchise in India
Getting a McDonald’s franchise isn’t just about money—it’s also about your business commitment.
Requirements:
- Net Worth: Minimum ₹10 crore
- Liquid Capital: At least ₹5 crore
- Business Experience: Preferably in retail, hospitality, or F&B
- Ownership of or Access to Commercial Property: Minimum 1500–2000 sq. ft. in a prime location
- Operational Capability: Willing to manage day-to-day restaurant operations or hire trained staff
- Training Commitment: Undergo extensive training by McDonald’s India
How to Apply for McDonald’s Franchise in India
Currently, McDonald’s does not offer franchise opportunities directly to individuals like small QSRs do. The brand operates through master franchise agreements (Hardcastle and CPRL), which may open up sub-franchise or development partnerships in select cases.
Steps to Apply:
- Visit the official websites:
- Hardcastle Restaurants Pvt. Ltd. (Westlife Foodworld)
- McDonald’s India (North & East)
- Look for partnership or franchise opportunities under “Contact” or “Investor” sections.
- Submit your business proposal or expression of interest.
- If selected, go through interviews, financial background checks, and training programs.
Profitability of a McDonald’s Franchise in India
- Monthly Sales Potential: ₹15 – ₹60 lakhs depending on location and outlet type
- Net Profit Margin: 10% – 15% of gross sales
- Breakeven Period: Usually 4 – 6 years
With a strong brand pull, extensive supply chain support, and marketing by McDonald’s India, most outlets maintain consistent performance, especially in high-traffic areas.
Benefits of Owning a McDonald’s Franchise
✅ Globally trusted brand with high customer loyalty
✅ Well-defined SOPs and employee training
✅ Strong supply chain and vendor network
✅ Proven business model with scalable growth
✅ Regular support in marketing, promotions, and innovation
Challenges and Risks
❌ Very high initial capital investment
❌ Limited availability of new franchise options
❌ Strict brand control and compliance requirements
❌ Long ROI period for smaller cities
Conclusion
Owning a McDonald’s franchise in India is a prestigious and potentially rewarding business opportunity for high-net-worth individuals or companies. However, it requires substantial financial investment, operational dedication, and alignment with the brand’s long-term vision.
