Summary: In this article, Aprio’s McDonald’s franchise advisor Josh Wolff explains the step-by-step process for becoming a registered applicant and what aspiring McDonald’s franchisees need to know before they apply.
If you have decided to start the path toward becoming a McDonald’s franchisee, then you’re about to embark on an exciting journey. But you’re also about to make a significant financial and professional commitment, one that starts long before you ever unlock the doors of your first restaurant.
If you are new to the McDonald’s system, then you may already know that you begin the process as a “registered applicant,” which is the formal designation for individuals outside of McDonald’s who want to join the franchise community.
From the initial application to asset verification to restaurant acquisition, it’s important to understand what the registered applicant journey entails so that you can prepare strategically and avoid costly surprises. Below, we’ll walk through the key stages of the McDonald’s registered applicant process and explain how Aprio can support you along the way.
Who is a Registered Applicant?
A registered applicant is someone who comes from entirely outside the McDonald’s system and is applying to become a franchisee for the first time. At the corporate level, McDonald’s groups a few related categories under this umbrella, including spouses of current operators and “next-generation” candidates (typically the children of existing franchisees); but even in these special cases, it’s critical to remember that the core registered applicant is a true outside candidate.
While you aren’t required to have prior business ownership experience to become a registered applicant, most do have some sort of entrepreneurial background simply because of the financial requirements involved. Before you start the registered applicant process, it’s important to keep in mind that McDonald’s expects its franchisees to be actively involved in their businesses; passive ownership is not permitted. Additionally, McDonald’s generally discourages registered applicants from owning competing restaurant concepts, preferring that franchisees focus entirely on the McDonald’s brand.
Understanding the Financial Requirements
Before you apply, you need to meet McDonald’s minimum liquidity threshold. Currently, McDonald’s requires registered applicants to have a minimum of $750,000 in liquid assets — and that figure is just the entry point. In addition to that amount, you need approximately $100,000 in working capital per restaurant you intend to acquire.
Acceptable sources for these liquid funds include your:
- Personal bank and investment accounts
- 401(k) or retirement account liquidations
- Proceeds from the sale of a business interest
- Documented gifts from a family member, provided proper documentation is in place
- Sales proceeds from a personal residence or rental properties
Keep in mind that your starting funds and capital must be verifiable and available; you cannot borrow them. Therefore, it’s essential for you to meet with a professional McDonald’s advisory team to get clear on your total financial picture and make sure that you have a solid nest egg before starting the process.
The Application and Interview Process
Once you submit your application to McDonald’s, you’ll go through an initial screening and interview with the McDonald’s franchise team. The application itself is lengthy (around six pages total) and covers your background, financial position, and preferred geographic markets.
If you advance past the interview stage, McDonald’s will move you into the asset verification process. This is a critical step in which McDonald’s requires you to work with a qualified CPA firm to validate and document your liquid assets. The CPA reviews your supporting documentation, signs off on the verification, and submits the completed report back to McDonald’s. This verified asset statement, along with your application, forms the foundation of McDonald’s evaluation of your readiness to move forward in the program.
Training and the Path to Approval
Once your CPA verifies your assets, McDonald’s will build a personalized development plan for you. This plan outlines the specific milestones you will need to complete before the company approves you to acquire your first restaurant. These requirements typically include:
- Running shifts and managing operations at an existing McDonald’s
- Working alongside an already-approved operator
- Leading multiple restaurant locations
- Completing McDonald’s leadership training courses and required exercises
How long will it take you to complete these requirements? That depends on how much time you dedicate to the process. In most cases, part-time participants typically spend 18 to 24 months moving through the program, while those who commit to it full-time can often complete the requirements faster. On average, most applicants complete the process in approximately one year when working at an accelerated pace.
Restaurant Acquisition: What to Expect
Once McDonald’s has approved you to acquire a restaurant, the corporation will present you with a restaurant package based on your preferred geographic markets and your asset verification amount. During this process, you will also find out how many restaurants McDonald’s will approve you to acquire. McDonald’s presents one package at a time, and you’ll have the opportunity to review it and decide whether to move forward.
It’s important to set realistic expectations about what’s in your approval package. For instance, you may be acquiring a restaurant that needs more attention or is in the process of being transitioned by its previous owner. Fortunately, McDonald’s has designed programs to help new operators get up-to-speed on existing restaurants, including:
- Traditional bank financing through national lenders
- Business for lease arrangements
- Operator assistance plans
If you experience challenges with the financial dynamics of a restaurant deal, McDonald’s can step in and provide you with additional support to help make the transition work for both you and the brand.
How Aprio Supports Registered Applicants
As a member of the National Franchise & Consulting Association (NFCA), Aprio is one of McDonald’s preferred CPA providers for the asset verification process. Beyond the initial asset verification, Aprio’s McDonald’s advisory team can also support you as you evaluate and negotiate your first restaurant deal. With decades of experience working with McDonald’s owner/operators, our team can help you understand the financial complexities involved, assess the opportunity, and position yourself for long-term success as a franchisee.
What’s more, Aprio also participates in the McDonald’s RISE class series, which is a four-day educational program for registered applicants facilitated by NFCA member firms. During these sessions, advisors walk candidates through deal structures, key financial considerations, and common pitfalls early in their ownership journeys.
Ready to Take the First Step Toward McDonald’s Ownership?
Navigating the registered applicant process requires careful financial preparation, the right professional partners, and a clear understanding of each step ahead of you. Aprio’s team has worked with McDonald’s registered applicants at every stage, and we’re here to help make your path to ownership as smooth as possible. Plus, if you become a registered applicant and continue to work with Aprio once you start operations, we will credit the cost of the asset verification back to your account.
