McDonald’s remains extremely popular in India, and this growing demand has led many entrepreneurs to consider owning a McDonald’s franchise. One of the most frequently asked questions is: “How much does a McDonalds franchise cost in India?”
In this blog post, we provide a detailed guide on owning a McDonald’s franchise in India, including costs, required paperwork, and the overall process. Whether you’re an entrepreneur planning to invest or simply curious about the investment and steps involved, this guide has you covered.
Our goal is to give you all the information and tools you need to decide whether investing in a McDonald’s franchise in India is the right move for you, helping you make an informed decision about your financial future. Let’s dive in!
Why a Franchisee of McDonald’s in 2026?
In India, McDonald’s is a fast-food restaurant that attracts customers of all types. It offers delicious, diverse food, from customers’ favorite burgers to mouthwatering chips and fries. Completing the act of eating and drinking is the food’s delectable flavor and efficient presentation. For many entrepreneurs, therefore, McDonald’s represents an excellent opportunity. With a brand value of over $234.47B, it is one of the food industry’s lucrative sectors.
Buying a McDonald’s franchise enables one to own a profitable global company that also conducts business in India. It can easily achieve its objectives in this branch of the economy by providing franchisees with the same corporate operational, marketing, and supply chain management support that the company provides. This helps ensure franchisees have all the tools necessary to operate their businesses properly.
Because of its robust business plan and well-known brand image, McDonald’s has the potential to grow and generate long-term profits. For those who wish to own the fast-food chain, this is the perfect moment to learn about the McDonald’s franchise in India and take advantage of the fantastic opportunity it presents.
Who Owns McDonald’s Franchise in India?
McDonald’s India is not a normal franchise company. Its business is run by two master franchisees, not individuals. Hardcastle Restaurants Pvt. Ltd. (HRPL), owned by the family of Amit Jatia, owns this firm. HRPL operates all McDonald’s outlets in West and South India. They cover cities such as Mumbai, Pune, Hyderabad, and Bengaluru. They have been in a relationship with McDonald’s since 1996.
Connaught Plaza Restaurants Pvt. ltd, this company deals with North and East India, Delhi, Noida, Chandigarh, and Lucknow. Long time, CPRL was shared between Vikram Bakshi and McDonald’s USA on a joint basis. They had a serious legal conflict. McDonald’s eventually brought everything under control. CPRL is now the complete property of the McDonald’s corporation.
How many McDonald’s Franchise in India?
As of February 2026, McDonald’s has over 500 restaurants operating across India, with the brand continuing to expand its presence in major cities and emerging markets. This includes outlets run by its two master franchise partners — Westlife Foodworld Ltd in the west and south, and Connaught Plaza Restaurants Pvt. Ltd. (CPRL) in the north and east — which together account for a rapidly growing store network in the country.
McDonald’s Franchise Models in India
The kind of franchise model determines the cost of a McDonald’s franchise. Depending on the franchise agreement, McDonald’s also anticipates receiving a leasing agreement and franchise fee.
1. STO/STR Locations:
STR and STO stand for “Small Town Retail” and “Small Town Oil,” in brief, respectively. In small towns, STR sites are usually built next to malls or large department stores; however, STO locations are typically near highways, rest areas, or gas stations. Both typically have a dining room coupled with a comprehensive menu.
2. Business Franchise Lease:
BFL, or “Business Franchise Lease,” is the option through which companies can establish McDonald’s canteens in offices. These franchisees are initially provided with a three-year lease, which can be extended if the canteen is maintained and customer feedback is positive.
3. Typical Restaurant:
These are commonly seen in shopping centers, food courts, and business or residential complexes. They offer a full menu, party seating, and dine-in facilities. These stores have 20-year leases. The estimated franchise fee will be INR 30 lakh.
4. Satellite Location:
These stores, having a very limited menu with hardly two to three products, operate in airports, colleges, institutions, and other similar places. In general, they offer takeaway alone. The lease agreement and approximate franchise cost of INR 15 lakh will be determined based on the outlet size and location. Additional capital is needed for equipment, maintenance, employee training, and other setup costs, which can go from ₹6.6 crores to ₹14 crores.
McDonalds Franchise Cost in India for 2026
McDonald’s offers various franchise formats to cater to the needs of different markets and geographies. While it varies based on its size and location, this changes the terms of a lease and costs. Key Start-up Costs for the Franchise of McDonald’s India
- Franchise price: The initial franchise price is normally between ₹30 and ₹40 lakhs. This would give the franchisee the right to use the McDonald’s brand.
- Equipment and interior expenses: Opening a restaurant is expensive; the equipment and setup costs alone could range from ₹4 crores to ₹5 crores. These include point-of-sale systems, furniture, and kitchen equipment.
- Real estate and construction expenses: Good site acquisition can be costly, especially when combined with building or remodelling, especially in high-demand locations like metropolises. Real estate investment lies between ₹1 crore and ₹2 crores
- Working Capital: To cover startup costs such as inventory, salaries, and utilities, one should maintain a working capital range of ₹10 Lakh to ₹15 Lakh after the franchise is established.
- Royalties: McDonald’s collects royalties between 4% and 5% of gross sales.
- Advertising Fees: National and regional marketing programs collected around 4-5% of revenues.
Total McDonalds Franchise Cost in India for 2026
Here’s a tabular breakdown of McDonalds franchise cost in India (2025):
| Investment Component | Estimated Cost (₹) | Description |
| Franchise Fee | ₹30 – ₹40 lakhs | One-time fee for brand usage rights and access to operational systems. |
| Security Deposit | ₹10 – ₹20 lakhs | Refundable deposit depending on location and agreement terms. |
| Real estate investment | ₹1 crore – ₹2 crores | Civil work, branding, furniture, lighting, air conditioning, etc. |
| Kitchen Equipment and interiors | ₹4 – ₹5 crores | Grills, fryers, refrigerators, POS systems, storage units, etc. |
| Initial Inventory | ₹5 – ₹8 lakhs | First stock of raw materials, packaging, cleaning supplies, etc. |
| Marketing & Launch Promo | ₹5 – ₹10 lakhs | Pre-opening marketing, signage, digital promotions, print ads, etc. |
| Working Capital | ₹10 – ₹15 lakhs | For staff salaries, utilities, and operational costs in the first few months. |
| Royalty Fee | 4% – 5% of gross sales | Ongoing monthly payment to McDonald’s India. |
| Advertising Fee | 4% – 5% of gross sales | Contribution toward national and regional advertising campaigns. |
Total Estimated Investment = 6.6 crore – ₹14 crore (Based on location, format, and store size.
Authorised McDonald’s Franchise Operators – India
1. Hardcastle Restaurants Pvt. Ltd. (West & South India)
- Address: 1001–1002, Tower-3, Indiabulls Finance Centre, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400013, Maharashtra, India
- Phone: +91-22-49135000
- Email (Customer Feedback): myfeedback@mcdonaldsindia.com
- Email (General): info@mcdonaldsindia.com
2. Connaught Plaza Restaurants Pvt. Ltd. (North & East India)
- Corporate Office: Sarojini House, Bhagwan Das Lane, Mandi House, New Delhi – 110001, India
- Alternate Office: 13A, Market, Jor Bagh, New Delhi – 110003, India
- Email (Real Estate / Development): re.helpdesk@del.in.mcd.com
How to Apply for a Franchise at McDonald’s in India
If you are considering purchasing a McDonald’s franchise in India and the authorities are accepting applications, you must first understand the procedures involved. The following are the crucial things to do:
1. First contact:
One has to reach out to McDonald’s India through either reaching their franchise team or their website. They would offer all possible information and guidance he might require on the McDonalds franchise cost in India, as well as the following process.
2. Submit your application:
You will then submit your application along with the supporting documents. The application form can be downloaded from the McDonald’s India website. You would also have to provide information on your location, financial stability, and company experience.
3. Background Check:
The company will conduct a background check to verify your qualifications after you submit your application. Your financial and legal background study will form part of this. And of course, an interview with you personally.
4. Approval and Agreement Signing:
If you qualify in all respects, then your franchise will be approved. Then you have to sign a franchise agreement with the terms and conditions that govern your partnership with McDonald’s India.
5. Site Selection and Construction:
You will have to select an appropriate site for your McDonald’s restaurant after you enter into a contract. McDonald’s India would assist you in the location, design, and construction
6. Training and support:
McDonald’s India will provide you with extensive training and ongoing support before your restaurant opens.
To obtain a McDonald’s franchise in India, one must complete a rigorous application process, undergo a background investigation, and follow the company’s stringent guidelines. With the extra advantage of being connected to one of the most recognizable companies in the world, the investment may be lucrative if well handled.
McDonald’s Franchise Profit Margin in India
And the next question I would like to discuss is the most crucial one: can you really make money?
A typical McDonalds franchise in India has yearly sales of about 2.5 -3 crore. This is all determined by numerous factors which include location, footfall, competition, operating expenses and the management of the outlet.
Average Net Profit Margin in QSR Franchises: 10-25%
In the case of Quick Service Restaurants (QSR) such as McDonalds, the net profit margin is 10 to 25% as per the industry standards. McDonalds franchises in India normally fall within this bracket. An outlet that is efficiently operating in a high-traffic area can be driven toward the higher end.
McDonald’s franchises in India are an excellent business investment opportunity for those who have a willingness to take risk. In India, reportedly, an average McDonald’s franchise does around Rs. 2.6 crore a year.
Still, numerous factors, including location, restaurant size, competition, marketing, and operational expenses, have a substantial bearing on the profitability of a franchise.
Franchise Price
If an individual wants to start the McDonald’s franchise in India, they need to be well aware of the pricing and the conditions to open this franchise. Some conditions that are required are Rs. 12 crores as net worth, 4% royalty charge over total sales, and a minimum investment of Rs. 6.6 crores.
- Location- A mall outlet in Mumbai will make much more than a small town outlet.
- Footfall -The more clients per day, the higher the revenue.
- Operational efficiency – It is significant to control food waste and employee expenses.
- Menu mix — More profitable products, such as beverages and combo meals, increase the profit.
- Marketing – Local advertising drives additional sales on top of national advertising.
- Royalty and ad fees – 4-5 percent of gross sales + 4-5 percent advertising fee. Approximately 8-10% of your revenue flows out each month.
Break-Even Timeline
The majority of McDonald’s franchises in India pay within 4-7 years. In a busy outlet in a metro city, break-even can be achieved much faster. A smaller-town outlet may be more protracted.
Read more franchise opportunities by reading our blogs on KFC Franchise Cost, Starbucks Franchise Cost and Subway Franchise Cost in India.
Major factors involved in applying for an Indian McDonald’s Franchise
Indian cost of a McDonald’s franchise It is important that you know a few points if you are planning to apply for a McDonald’s franchise in India. Beside the McDonald’s franchise fee, or MCD franchise price India, that changes depending on a series of events, there are a number of steps and paperworks you need to complete and submit.
Before applying for a McDonald’s franchise in India, keep the following points in mind:
1. Study and understand the market
The market, consumer tastes, and competition in the region where you are planning to open the restaurant are the most important considerations before investing in a franchise. McDonald’s provides plenty of training.
2. Meet the eligibility criteria
The candidates need to meet the qualification criteria that McDonald’s has in place. These include having liquid capital of at least Rs. 1.5 crore and a net worth of at least Rs. 5 crore. You should also be ready to commit yourself to the franchise for at least 20 years and have experience in the food service industry.
3. Submit the paperwork
A detailed business plan, financial accounts, and evidence of money are some documents to be submitted to procure an Indian McDonald’s franchise. In the application, further papers may be solicited from the business with reference to its background also.
4. Understand Franchise Agreement
You will be required to sign a franchise agreement with McDonald’s if your application is approved. Since it explains your rights and obligations as a franchisee, you must read and understand the terms and conditions of the agreement before signing.
5. Follow the Support and Training Program
McDonald’s will give franchisees detailed training and support, which includes helping in marketing, building, and site selection. So to ensure the success of your franchise, you will need to comply with the training and support program.
In India, applying for a McDonald’s franchise takes careful planning, preparation, and research. You might have better opportunities to receive approval and to run a profitable franchise by keeping the following crucial considerations in mind.
Challenges of Operating a McDonald’s Franchise in India
It would be nice to be a McDonalds owner. And yet there are practical difficulties also. This is all you need to know before investing:
1. Extremely High Start-up Cost.
The 6.6 crore to 14 crore investment cannot be easily afforded by the small business owners. You require powerful financial support or business loans.
2. Strict Operational Standards.
McDonalds has highly strict food standards, hygiene standards and customer service standards. These are rules that should never be violated. Any breach would lead to fines or even cancellation of the franchise.
3. High Ongoing Fees
You submit 8-10 percent of gross sales in royalty and advertising charges on a monthly basis. This directly lowers your profit margin.
4. Limited Flexibility
You can not change the menu, price or branding as you can with an independent restaurant. All of this is determined by McDonalds. There is not much creative control on your side.
5. Long Lease Commitment
Twenty years will be a long time. The business environment is not fixed. When your location is performing poorly, it is not easy to terminate the contract.
McDonald’s vs Other QSR Franchises in India — Comparison Table
How does McDonald’s compare with other popular fast-food franchise options in India?
| Brand | Franchise Investment | Royalty Fee | Profit Margin | Outlets in India |
| McDonald’s | ₹6.6 crore – ₹14 crore | 4–5% | 10–25% | 350–400+ |
| KFC | ₹1 crore – ₹2 crore | 5–6% | 12–20% | 900+ |
| Subway | ₹50 lakh – ₹1 crore | 8% | 10–18% | 600+ |
| Domino’s | ₹30 lakh – ₹1 crore | 5.5% | 10–20% | 1800+ |
| Burger King | ₹2 crore – ₹5 crore | 5% | 12–22% | 400+ |
| Wow! Momo | ₹15 lakh – ₹30 lakh | 6% | 15–25% | 500+ |
Future Outlook for the Indian McDonald’s Franchise
In the years leading up to 2025, many significant factors are expected to impact McDonald’s franchisees in India:
1. Health-Conscious Menu alternatives:
Given the growing demand for organic and healthy food, McDonald’s is probably going to provide more menu items that are more in line with organic or healthful alternatives. This will address the worldwide food trend as well as people who are concerned about their health.
2. Technology Integration:
The fast food business has been using technology for quite some time now. For increasing operational efficiency, McDonald’s must adopt self-service kiosks, delivery services, and mobility.
3. Sustainable Practice:
McDonald’s works very hard nowadays to make sure that it uses the best sustainable food and disposes of its waste in a sustainable manner. Since this will undoubtedly be useful for this generation of consumers, organizations may see an increase in advertising that support environmental initiatives.
4. Customization and Personalization:
The changing consumer tastes create a demand for personalized diets. Among the problems which McDonald’s may embrace sometime include exact requirements for personalization where it will allow a consumer to choose a meal based on one preference.
5. Growth in More Constrained Markets:
McDonald’s should seek opportunities in smaller or mid-size towns as franchisees get over-concentrated in major cities. Business could enter new geographies through targeting the mushrooming middle class, which seems to gorge endlessly for fast food.
In summary
The opportunity to start business operations in this dynamic market will surely be attractive for anyone considering the cost of a McDonald’s franchise in India. While there are some problems to be solved, it is equally important to recognize that the brand is usually highly visible in the marketplace and the company’s structure does lay a good foundation for expectation. Therefore, potential franchisors might position themselves appropriately to capitalize on current trends and soon-to-be revealed developments so that they shall be in good standing.
FAQs
1. What is the estimated price for initiating a McDonald’s franchise in India?
Depending on location and restaurant size, launching a McDonald’s franchise in India might cost around Rs. 6 crores to Rs. 7 crores.
2. Does this make it expensive for Indian small business owners to own a McDonald’s franchise?
McDonald’s (McD) might not afford more with its cost in India in the hands of small business entrepreneurs. But it can make all the finance needed from financing solutions.
3. How much a McDonald’s franchise makes in India?
Since McDonald’s is among the most popular franchises in India, a franchise there could be a highly profitable economic venture. A lot of factors influence the profitability of the McDonald’s franchise, such as
4. What is the amount a McDonald’s franchise in India pays for advertising?
A McDonald’s franchise in India generally pays 3% of its gross sales as an advertising fee.
5. What is the number of McDonald’s restaurants in India?
McDonald’s India has more than 160 locations across the nation and has been operating here for over 12 years.
6. How do I get a McDonald’s franchise in India?
Getting a McDonald’s franchise in India is a long process. First, you need to make contact with McDonald’s India and you can do that via their official website. On the website, look for the “Contact Us” box and click on “Email” or “Call”.
