McDonald's Restaurant Purchase/Sale Decision

The decision to purchase a McDonald's restaurant involves many objective and subjective considerations. Our more than 30 years of experience working with McDonald's franchisees gives us a unique, independent perspective about the purchase/sale decision. Our experience will guide you through the decision-making process. Certain broad areas that should be considered in the decision-making process are:

• Sales and sales trends
• Rent structure/tenure
• Profitability
• Expandability
• Reinvestment needs
• Rewrite issues
• Competition
• Risk tolerance
• Store personnel
• Personal/Family considerations
• Financing
• Income Taxes
• Geographic location
• Economic conditions
• Growth potential

Each of these broad topic areas requires detailed analysis. Many of them are interrelated in one way or another. We work with our McDonald's clients using this broad outline as the basis to prepare estimated cash flow projections for the restaurant under consideration. The projected cash flows serve as a primary factor in establishing a reasonable price for the restaurant. McDonald's Corporation recognized our expertise in this area by naming us an approved vendor of independent valuation services for McDonald's franchisees.