McD Franchise in India | Be a Part of the Giant Fast Food Chain

“There’s almost nothing you can’t accomplish if you set your mind to it," says Ray Kroc in his book “Grinding it Out: The Making of McDonald’s”. And what an accomplishment! 

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The company has 235+ outlets in West and South India alone! The McDonald’s success story proves that starting small is not a failure; it’s the recipe for success!

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So, grab your McFries and let’s understand how the company became a global giant. Also, learn how you can become part of the success story through the McD's franchise!

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From Local to Global: How McD Became a Global Giant?

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Dick and Mac McDonald, the McD brothers, hailed from the United Kingdom to find opportunities in the USA. 

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What started as a small restaurant in 1940s San Bernardino quickly gained popularity. Their ‘Speedee Service System’ brought in large numbers of customers.

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But how does a small restaurant (McDonald's Bar-B-Que Restaurant) become a global giant? 

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In 1954, Ray Kroc, then a Multimixer salesman, visited the restaurant. Fascinated by the operations, he decides to become their franchise agent. In 1955, he opened the first McDonald’s, the name we all cherish today, in Des Plaines, Illinois. 

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Ray Kroc transformed the restaurant chain into a global icon with 1 simple goal: to open 1,000 McDonald’s restaurants in the US. With ‘Quality, Service, Cleanliness and Value’ as their mission, the company now has over 36,000 outlets in 100+ countries! 

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Breaking Down the McD Franchise Cost in 2025

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While McD is currently not offering any franchise opportunities in India, many entrepreneurs are still curious about the investment required to enter the burger space.

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Instead of McD’s official numbers, let’s look at the estimated costs of setting up a burger joint that could compete in the same segment.

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Note: These figures are estimates and for informational purposes only. 

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Apart from these expenses, you also need ₹20 lakh for training your staff and supporting your restaurant. Plus, you need to spend 3% of your gross sales on advertising and 4-6% of gross sales on royalty fees.

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Other Requirements for Opening a McD Franchise

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Just like the Maharaja Mac is incomplete without a side of the signature fries, the capital requirements of any burger joint are incomplete without proper footfall and location. Let’s get into it:

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What is the McD Franchise in India business model? 

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Okay, let’s understand how the global giant operates in India. Opening a McD franchise in India is not as easy as ordering a Ranveer Singh meal! 

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The company operates on a master franchise model, in partnership with Hardcastle Restaurants Private Limited (HRPL) for West and South India and Connaught Plaza Restaurants Private Limited (CPRL) for East and North India. 

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So, what does it mean for you? 

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The HRPL and CPRL have the sole rights to use the iconic ‘M’ and provide ‘Happy Meals’ to India! This is because McDonald’s doesn’t allow individual franchising. 

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Check out the best franchise businesses in India.

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McDonald's Franchise Outlet Types in India

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With McD, diversity runs in the business. The brand offers 4 types of outlets in India, catering to every need of its customers. These are:

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1. Traditional Restaurants

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You can find traditional McD restaurants around malls, food courts or other high footfall areas. Whether you’re craving a McAloo Tikki Burger or a Big Spicy Paneer McWrap, you will find everything here.

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These areas are spacious and perfect for corporate parties and a dine-in experience. Franchise fees are usually capped at ₹30 lakh for a traditional restaurant. 

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2. STO/STR Locations 

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Small Town Oil and Small Town Retail locations are catered towards towns and semi-urban areas. 

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You can find STR McD outlets near department stores and malls in small towns. On the other hand, you will see STO outlets near petrol pumps. 

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You will find a full-range menu in these outlets, allowing people to experience the complete McDonald’s experience. 

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3. BFL Franchise 

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With Business Franchise Lease (BFL), McDonald’s canteens can be opened at workplaces and business parks. Imagine tackling Monday blues with a big Maharaja Mac! Well, that’s the basic concept for these outlets. 

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The master franchisee usually buys a 3-year lease on the property, which can be extended if the outlet brings in steady profits and follows the McD’s 5P (product, price, place, promotion and people) policy. 

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4. Satellite Outlets 

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Lastly, you can find satellite outlets in airports, metro stations and railway stations, offering a limited menu. The concept behind this is to provide ‘on the go’ meals. You can’t dine in these outlets, but instead, order takeaways.

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How to Apply for a McD Franchise in India?

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You can’t directly apply for a McD franchise in India, as it’s managed by HRPL and CPRL. As we stated earlier, the company is currently not looking for any new franchisees or sub-franchisees.

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However, if you’re a landlord or developer looking to sell or lease your property, you can follow the steps below:

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1. Visit the Official McDonald’s Website

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Search for the official McDonald’s website and navigate to the top-right corner. Click on the ‘Real Estate’ option, read the form description and understand the requirements. 

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2. Fill in Your Contact Details 

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Select whether you are a developer or a landlord. Then, add your name, mobile number and email address. Additionally, you can also add your telephone number and your address. 

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3. Enter Property Details 

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For this, you will get 2 options: one for the plot and another for the build-ups. For the plot, enter your plot size, dimensions, frontage, front road width, side road width and floor plate. 

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Additionally, also add the address, Google Maps location, nearby landmark and property photos.

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For the build-up, provide the address, ground floor and 1st floor area, size of the property, Google location and frontage. 

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Additionally, you need to choose the catchment and property type. Fill in the commercial per square foot, commercial projects you have done and availability of service roads. 

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Lastly, upload photos of the property and click on ‘Submit’. 

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Check out the cost of Haldiram's franchise in India.

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Wrapping Up

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McDonald’s not only expanded into different countries, but it also adapted its menu to the local taste buds. 

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India is one of the biggest examples, where the signature Big Mac became the Maharaja Mac to suit Indian culture. This dedication is an undeniable factor in its success. 

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So, what’s the bottom line? The McD franchise is one of the most profitable business ventures in 2025. 

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However, since the giant isn’t offering any new opportunities, the best thing to do is wait or try out other burger chains offering franchises in India. 

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Frequently Asked Questions 

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1. How much does the McD franchise cost?

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Currently, you cannot directly apply for a McD franchise in India. However, if you are looking to set up a similar burger joint that could compete in the same space, the estimated investment ranges between ₹1 crore and ₹1.5 crore.

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The exact cost would depend on factors like the restaurant’s size, its location and the local demand.

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2. Who owns McD in India? 

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In India, Hardcastle Restaurants Private Limited (HRPL) and Connaught Plaza Restaurants Private Limited (CPRL) open and operate McDonald’s restaurants. They have the master franchise rights in the country. 

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3. What is the McD franchise profit margin in India?

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Although McDonald’s doesn’t disclose individual franchisee numbers, you can expect a margin of 25-30% from any similar burger joint. However, various factors may influence this figure. 

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4. Can I open an individual franchise with McDonald’s?

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No, McDonald’s doesn’t operate on an individual franchise model in India. Only HRPL and CPRL have the licensing rights and can open an outlet.