McDonald’s owner/operators are facing some of the most significant changes to their business than at almost any other time. McDonald’s is pursuing a historic upgrade to all its restaurants – starting with the Major Remodel Program and capped off with the Experience of the Future that requires infrastructure investments geared toward changing technology, customer experience and delivery.
While McDonald’s is offering to pay 55 percent of the costs for the EOTF upgrades, owner/operators will still incur significant costs themselves.
Many owner/operators are still working through MRPs and then will have to turn their attention to the EOTF upgrades.
Consequently, this is the time for serious financial planning. Owner/operators should be aware of the current financial condition of their business, develop a solid five-year projection of cash flow, and know their ability to borrow money, if necessary.
Having these figures at hand will be a must when looking at financing options for the MRP and EOTF upgrades that can cost anywhere from $150,000 to $700,000 per location.
Most of the larger lending institutions are aware of McDonald’s EOTF and are prepared for owner/operators to inquire about different financing options. With that in mind, lenders will be asking for specific financial information.
While some operators may have the operating capital to fund these upgrades, it may make better financial sense to finance the costs.
Please contact us so we can help you make financial decisions that will benefit you and your business.