McDonald’s is one of the most popular fast-food brands in the world, and its demand in India is stronger than ever. Every year thousands of entrepreneurs search for McDonald’s franchise cost in India, hoping to open one of the most successful QSR (quick-service restaurant) outlets in the country.

But there is one major truth most people don’t know: McDonald’s does not offer traditional franchising in India. Instead, it works through a Development License Partner (DLP) model, which has stricter requirements and higher investment.

This guide brings you clear, updated, and trustworthy information for 2026, including total investment, profit expectations, application steps, eligibility, and alternatives, designed to rank well and help readers make informed decisions.

However, opening a McDonald’s outlet is not as simple as applying online and paying a fee. This article will help you understand:

Exact investment required in 2026
Breakdown of licensing and setup costs
Application process
Profit and earnings potential
Eligibility criteria
Pros, cons, and alternatives

About McDonald’s India (A brief history)

McDonald’s operates in India through two major partners:

North & East India

McDonald’s India Pvt Ltd

South & West India

Westlife Foodworld Ltd (formerly Westlife Development)

These two partners oversee store development, supply chain, real estate, training, quality control, and expansion.

Why is McDonald’s so successful in India?

A strong supply chain network backed by top partners like Vista
Consistent pricing and localized menus (Aloo Tikki, McSpicy Paneer, etc.)
High trust and brand recognition
Scalable business model
Massive customer base across cities

Because of this, the demand for McDonald’s franchise information remains extremely high.

Is the McDonald’s franchise available in India in 2026?

Here’s the most transparent truth: McDonald’s does not offer a simple traditional franchise licence in India. Instead, it offers partnership opportunities under the Development License Partner model (DLP).

What is the DLP model?

In this system:

You manage a specific territory
You bear the cost of setting up and running outlets
McDonald’s provides brand, training, supply chain & support

Eligibility for DLP

Strong financial background
Ability to invest ₹6–₹14 crore
Experience in managing large businesses
Ability to maintain real estate, operations & staffing
Long-term commitment (20+ years)

McDonald’s Franchise Cost in India 2026

Total Estimated Investment (2026)

₹6 crore to ₹14 crore depending on format and location.

Why such a wide range?

Metro vs. non-metro
Drive-thru vs. mall outlet
Real estate cost
Size and seating capacity
Franchise partner policies

Initial Licence Fee

McDonald's charges:

₹30–₹45 lakh (approx.): as initial licensing fees
Royalty charges: 4%–6% of net sales
Marketing fees: 3%–5% of sales

These charges may vary between regions but remain within these industry benchmarks.

Restaurant Construction Cost

Setting up a McDonald’s restaurant is expensive due to strict quality standards.

Breakdown:

Construction & interiors: ₹1.5–₹3 crore
HVAC & ventilation: ₹15–₹40 lakh
Furniture, seating & décor: ₹40–₹90 lakh

Drive-thru units may require more investment.

Kitchen Equipment Cost

McDonald's maintains global-standard equipment.

Estimated equipment investment: ₹1.2–₹2 crore

Includes:

Fryers
Grill systems
Food prep areas
Freezers
POS systems
Waste management systems

Staff Hiring & Training

A new outlet typically requires:

40–70 staff members
Managers, cashiers, kitchen crew, service crew

Initial staffing & training budget: ₹15–₹25 lakh

Working Capital Requirement

You’ll need funds to run the outlet for the first few months.

Recommended capital: ₹20–₹35 lakh

Real Estate Requirements

McDonald’s prefers high-footfall locations.

Minimum space required:

High-street / standalone: 1800–4000 sq ft
Mall food court: 800–1500 sq ft
Drive-thru: 3500–6000 sq ft

Rental security deposits can be significant depending on the region.

McDonald’s Store Formats & Cost Comparison

Store Format	Area Needed	Approx. Cost
Standard Dine-In	2500+ sq ft	₹6–₹10 crore
Drive-Thru	3500–6000 sq ft	₹8–₹14 crore
Mall Food Court	800–1500 sq ft	₹4–₹6 crore
McCafé Add-On	Add 200–500 sq ft	+₹25–₹35 lakh

Step-by-Step McDonald’s Franchise Application Process (2026)

Step 1: Submit Expression of Interest

Visit the respective regional partner website and submit details about:

Business experience
Investment capacity
Location (if available)

Step 2: Screening & Background Check

Financial capacity
Business reputation
Past business performance

Step 3: Interviews & Business Plan Presentation

Long-term development plan
Territory growth strategy
Real estate access
Operational capability

Step 4: Territory Allocation

Number of outlets
Location priorities
Store formats

Step 5: Training & Orientation

8–12 months of operational training
Food safety certification
Branding & operations learning

Step 6: Store Setup & Launch

Construction begins
Equipment installation
Trial runs & quality audits
Grand opening

McDonald’s Franchise Profit & Earnings Guide (2026)

Average Monthly Revenue

Tier 1 cities: ₹50–₹1.2 crore/month
Tier 2 cities: ₹35–₹80 lakh/month
Tier 3 cities: ₹20–₹45 lakh/month

Highway drive-thru units often outperform city outlets.

Profit Margin Analysis

Gross Profit Margin: 55%–60%

Net Profit Margin: 8%–15% after operational costs & royalties

Estimated Monthly Profit

₹4 lakh to ₹12 lakh per month depending on:

Location
Size
Store type
Ren
Footfall

ROI & Payback Period

Because the investment is huge, the break-even takes time. Payback period: 5–7 years
Some high-performing stores recover faster

Pros & Cons of McDonald’s Franchise in India

Pros

The world’s most trusted fast-food brand
Very strong supply chain & training
High footfall stores
Strong marketing support
Long-term success model

Cons

Very high investment
Limited licensing availability
Strict controls & operational guidelines
Long ROI period compared to smaller brands
Only large investors qualify

Also Read: Domino's franchise cost, setup, margin in 2026

Is a McDonald’s Franchise Worth It in 2026?

McDonald’s is a great business opportunity, but not for small or medium investors. You should consider it if you:

Have ₹6–₹14 crore investment capacity
Have experience managing large businesses
Can commit for 20+ years
Have strong real estate access

If you’re looking for a lower investment, faster ROI franchise, McDonald’s may not be the right choice.

Best Alternatives to McDonald’s Franchise in India (Lower Investment Options)

If McDonald’s is too expensive, try these popular alternatives:

1. Burger Singh

Investment: ₹30–₹50 lakh
Indianised menu, strong branding.

2. Burger King

Investment: ₹2.5–₹5 crore
International brand with fast expansion.

3. KFC

Investment: ₹1.5–₹3.5 crore
Strong chicken-focused model.

4. Carl’s Jr.

Premium burger brand.

5. Local Burger Chains Under ₹20 lakh

Biggie's Burger
What-a-Burger
The Burger Club

These offer good ROI and accessibility for smaller investors.

Conclusion

Opening a McDonald’s in India is a dream for many, but it requires major financial strength, business experience, and long-term commitment. It's one of the most expensive QSR franchising opportunities in the nation, requiring a total investment of between ₹6 crore and ₹14 crore.

However, because of the brand's enormous popularity and tried-and-true methods, the business can be very lucrative, stable, and rewarding if you qualify. For many others, a number of reasonably priced options offer comparable results at a lower cost.

FAQs

Q: What is the McDonald’s franchise cost in India in 2026?

₹6 crore to ₹14 crore depending on location and format.

Q: Is a McDonald’s franchise available to the general public?

Very rarely. It follows a Development License Partner (DLP) model.

Q: What is the profit margin of a McDonald’s outlet?

Net profit margin is around 8%–15%.

Q: What is the ROI period?

Approximately 5–7 years.

Q: What are the space requirements?

800 sq ft (mall) to 6000 sq ft (drive-thru).