McDonald's vs Newk's Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of McDonald's vs Newk's including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees

 
McDonald's Franchise
Newk's Franchise
Investment $1,058,000 - $2,230,000 $932,000 - $1,131,000
Franchise Fee $45,000 $40,000
Royalty Fee 4% 5%
Advertising Fee 4% 1.5%
Year Founded 1955 2004
Year Franchised 1955 2004
Term Of Agreement 20 years -
Term Of Agreement 20 years -
Renewal Fee $45K none


Business Experience Requirements

 
McDonald's Franchise
Newk's Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills
  • Newk's is looking for experienced franchise owners with a track record of success opening and running multiple unit foodservice operations. Qualified candidates will have a minimum of 3 years experience, and be financially and operationally capable of developing at least 3 -5 Newk's Express Cafe locations (we recommend that each franchise candidate/group have at least $600,000 in liquid assets, meaning cash, stocks, bonds or other easily liquid assets).

    Financing Options

     
    McDonald's Franchise
    Newk's Franchise
      In-House/3rd Party In-House/3rd Party
    Franchise Fees No/No -/Yes
    Start-up Costs No/No -/Yes
    Equipment No/Yes -/Yes
    Inventory No/No -/Yes
    Receivables No/No -/Yes
    Payroll No/No -/Yes

    Training & Support

     
    McDonald's Franchise
    Newk's Franchise
    Training On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant On-The-Job Training: 276 hours Classroom Training: 74 hours
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
    Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app Co-op Advertising Ad Templates Regional Advertising Social media SEO Email marketing Loyalty program/app
    Operations 82% of all franchisees own more than one unit

    Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

    Number of Employees Required to Run: 50

    Expansion Plans

     
    McDonald's Franchise
    Newk's Franchise
    US Expansion Yes -
    Canada Expansion No -
    International Expansion Yes -

    Start-Up Costs and Fees Mobile

    Investment
    McDonald's Franchise
    $1,058,000 - $2,230,000
    Newk's Franchise
    $932,000 - $1,131,000
    Franchise Fee
    McDonald's Franchise
    $45,000
    Newk's Franchise
    $40,000
    Royalty Fee
    McDonald's Franchise
    4%
    Newk's Franchise
    5%
    Advertising Fee
    McDonald's Franchise
    4%
    Newk's Franchise
    1.5%
    Year Founded
    McDonald's Franchise
    1955
    Newk's Franchise
    2004
    Year Franchised
    McDonald's Franchise
    1955
    Newk's Franchise
    2004
    Term Of Agreement
    McDonald's Franchise
    20 years
    Newk's Franchise
    -
    Renewal Fee
    McDonald's Franchise
    $45K
    Newk's Franchise
    none


    Business Experience Requirements

    Experience
    McDonald's Franchise

  • Industry experience
  • General business experience
  • Marketing skills
  • Newk's Franchise
    Newk's is looking for experienced franchise owners with a track record of success opening and running multiple unit foodservice operations. Qualified candidates will have a minimum of 3 years experience, and be financially and operationally capable of developing at least 3 -5 Newk's Express Cafe locations (we recommend that each franchise candidate/group have at least $600,000 in liquid assets, meaning cash, stocks, bonds or other easily liquid assets).

    Financing Options

      In-House/3rd Party
    Franchise Fees
    McDonald's Franchise
    No/No
    Newk's Franchise
    -/Yes
    Start-up Costs
    McDonald's Franchise
    No/No
    Newk's Franchise
    -/Yes
    Equipment
    McDonald's Franchise
    No/Yes
    Newk's Franchise
    -/Yes
    Inventory
    McDonald's Franchise
    No/No
    Newk's Franchise
    -/Yes
    Receivables
    McDonald's Franchise
    No/No
    Newk's Franchise
    -/Yes
    Payroll
    McDonald's Franchise
    No/No
    Newk's Franchise
    -/Yes

    Training & Support

    Training
    McDonald's Franchise
    On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant
    Newk's Franchise
    On-The-Job Training: 276 hours Classroom Training: 74 hours
    Support
    McDonald's Franchise
    Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software
    Newk's Franchise
    Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
    Marketing
    McDonald's Franchise
    Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app
    Newk's Franchise
    Co-op Advertising Ad Templates Regional Advertising Social media SEO Email marketing Loyalty program/app
    Operations
    McDonald's Franchise
    82% of all franchisees own more than one unit

    Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

    Newk's Franchise
    Number of Employees Required to Run: 50

    Expansion Plans

    US Expansion
    McDonald's Franchise
    Yes
    Newk's Franchise
    -
    Canada Expansion
    McDonald's Franchise
    No
    Newk's Franchise
    -
    International Expansion
    McDonald's Franchise
    Yes
    Newk's Franchise
    -

    Company Overviews

    About McDonald's

    Ray Kroc, a milkshake mixer salesman, ventured to California in 1954 to visit McDonald's hamburger stand, where he heard they were running eight mixers at once. Kroc was impressed by how rapidly customers were served and, seeing an opportunity to sell many more milkshake machines, encouraged brothers Dick and Mac McDonald to open a chain of their restaurants. Kroc became their business partner and opened the first McDonald's in Des Plaines, Illinois in 1955.
    McDonald's brand is in 122 countries around the world. Thirty thousand locations serve 51 million customers each day. More than 70 percent of McDonald's restaurants around the world are owned and operated by independent local business people. Most standalone McDonald's restaurants offer both counter and drive-through service, with indoor and sometimes outdoor seating. The Drive-Thru, Auto-Mac, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the former two steps are frequently combined. In some countries "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service.
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    About Newk's

    Experienced restaurateurs know that the only constant in our industry is change. Newk's has a flexible menu designed for timeless appeal with three primary components - sandwiches, salads and pizzas. These were chosen to provide maximum adaptability to changing costs, tastes and regional preferences.
    Newk's is also a flexible concept adaptable to many venues.
    * Pad or commercial sites
    * Strip and lifestyle centers
    * Urban/downtown locations
    * Conversions of existing restaurants
    * Enclosed mall/food court locations
    * University or office locations
    * Airport, train station or other non-traditional locations

    The Newk's Express Cafe franchise program is designed for growth; it's designed to provide you and your organization with the guidance, the training and the tools to implement our innovative concept, and to refine and grow for many years to come. The Newk's Express Cafe strategy is to provide each customer with many ways to enjoy Newk's, and help franchise owners maximize the benefit of each customer relationship.

    The Newk's Concept offers:
    * Dine-in
    * Takeout
    * On-site catering
    * Retail sales
    * Corporate sales programs

    Get Growing - with Newk's Express Cafe
    If you are looking for a solid business opportunity designed for growth, consider the advantages of the Newk's Express Cafe franchise opportunity:
    * A concept validated by industry trends
    * Limited menu with unlimited appeal
    * A streamlined, efficient operational system
    * Flexible menu, adaptable to change in trends and tastes
    * Flexible store design/location options
    * Long-term, multi-unit franchise focus
    * An experienced, respected management team
    * Strong training and marketing programs
    * The ongoing support of a dedicated franchise company