McDonald's Franchise VS. Herbalife Distributorship

McDonald's Franchise
What It Takes To Build A Business:
Strong business acumen needed with experience
building a business from the ground up
1-week training at McDonald's University
Hands-On Management - you must run the
restaurant yourself
McDonald's requires a 20-year agreement
Initial Start-up Costs: $905,200-$1,746,000
(Source: www.mcdonalds.com)

Additional Start-up Costs:
$45,000 franchise fee ($45,000 renewal fee after
required 20 years)
12.5% ongoing royalty fees
$100,000-$150,000 in miscellaneous start-up costs
such as initial equipment, inventory, accounts
receivables, payroll and insurance
Total Additional Start-up Costs: $145,000-$195,000

Funding Restrictions:
40% personal cash investment for new locations;
25% for existing locations (balance may be paid in
a maximum term 7 yr. bank loan)
$420,000-$776,400 out-of-pocket CASH needed
Total Initial Start-up Costs: $1,050,200-$1,941,000

Average annual income for McDonald's franchisee
is $240,000 for each restaurant owned.