QUICK SUMMARY
McDonald’s is the world’s largest restaurant chain by revenue, serving over 69 million customers daily across more than 100 countries.
McDonalds was founded in 1940 by Richard and Maurice McDonald and began as a single restaurant operating in San Bernardino, California. The corporation was purchased in 1955 by Ray Kroc and quickly grew into both an economic force and a symbol of American culture.
Known for its iconic Golden Arches logo and menu staples like hamburgers, fries, and milkshakes, McDonald’s has over 40,000 locations worldwide.
The McDonald’s brand’s focus on consistency, quality, and innovation has made it a top franchise opportunity, consistently ranking in the top 10 franchises globally.
KEY TAKEAWAYS
McDonald’s operates over 40,000 restaurants worldwide, with approximately 13,300 in the United States; 93-95% of these locations are franchised.
Initial investments for McDonald’s franchises range from $1,366,000 to $2,450,000 and require $500,000 in liquid assets.
Franchisees must complete 12-18 months of in-restaurant training and ongoing part-time training, including seminars, conferences, and online modules.
Average annual revenue for McDonald’s franchises in the U.S. is around $2.8 million, with McDonald’s franchise owners earning approximately $150,000 per year.
The initial franchise fee for a McDonald’s restaurant is $45,000, with ongoing costs including a 4% royalty fee and 4%+ brand fund fee for marketing.
Join Our Franchise Buyers Beta Course for
Aspiring Franchise Owners
Is McDonald’s A Franchise?
Yes, McDonald’s began franchising in 1953, establishing their first franchised location in Phoenix, Arizona. Franchisees are required to follow strict standards to maintain the company’s brand consistency.
McDonald’s offers four types of franchises:
- Traditional Restaurants – The franchise is located in freestanding buildings and serves a full menu of McDonald’s products.
- Satellite Locations – The franchise offers a limited menu of McDonald’s products and is situated in places such as airports, hospitals, universities, and other niche locations.
- STO (Small Town Oil) and STR (Small Town Retail) Locations – The franchise is located within convenience stores and offers a full menu of McDonald’s products.
- BFL (Business Facilities Lease) Franchises – The franchise operates in one of the above ways, but with the distinction that the McDonald’s corporation owns both the property and building, and leases space to the franchise owner.
The McDonald’s story represents one of the first significant American success stories in franchise possibilities, with Ray Kroc entering the company in 1955 as a franchisee and then purchasing the company in 1961.
How Many McDonald’s Locations Are There?
McDonald’s boasts over 40,000 restaurants worldwide, with between 93-95% of locations being franchised.
The company operates around 13,300 in the United States. Orlando, FL, has the highest number of McDonald’s restaurants per capita, with one for every 5,102 residents.
The remaining nearly 27,000 McDonald’s restaurant locations are spread across 120 countries globally, with multiple franchises on every continent but Antartica.
Despite a number of public relations challenges over the years – including high-profile criticisms of the health of its products – McDonald’s maintains high revenues and cultural relevance.
McDonald’s introduced “McDelivery” in 2017, making it an early adopter of delivery partnerships like Uber Eats and DoorDash. This and other innovative decisions by the company have contributed to McDonald’s continued popularity.
What Training Is Required To Open A McDonald’s?
McDonald’s offers a comprehensive training program ensuring consistent, high-quality service across their vast network of restaurants.
Their world-class training includes Hamburger University, which prepares owners to run successful fast-food franchises anywhere in the world.
To own a McDonald’s franchise, you must:
- Complete 12-18 months of in-restaurant training.
- Engage in self-directed, part-time training for 20 hours weekly.
- Participate in seminars, conferences, and personalized training sessions.
- Demonstrate success based on your competency.
- Attend operator training classes led by local training professionals.
Training includes online modules, in-person sessions, and on-the-job learning and is offered in various languages according to the needs of the potential franchisee.
McDonald’s supports franchisees with many franchise opportunities, extensive marketing, advertising, and operational assistance, and their global brand and support system make it a profitable investment for entrepreneurs.
How Much Does It Cost To Open A McDonald’s?
Starting a McDonald’s franchise requires a significant investment, with initial costs ranging from $1,366,000 to $2,450,000, depending on the location and specific circumstances.
McDonald’s franchisees must have at least $500,000 in liquid assets; however, unlike many of their competitors in the fast-food industry, McDonald’s does not set a minimum net worth for its franchisees.
Franchisees should expect to pay an ongoing McDonald’s franchise cost of 4% royalty fee on gross sales and another cost of 4%+ brand fund fee for marketing
Additional expenses include, but are not limited to:
- Inventory and Supplies
- Rent and Utilities
- Wages and Insurance
While the initial investment is substantial, careful planning and management can make a McDonald’s franchise a profitable venture.
Here are 5 Low Cost Franchises that make
$1,000,000 (Backed by Data)
Most People Waste Countless Hours Of Time Stuck In Confusion, Scoping The Internet, Trying To Find Winning Franchises.
This Will Save You So Much Time.
We’ve Done The Heavy Lifting For You And Narrowed It Down To 5 Low-Cost Franchises That Make $1,000,000 So You Can Save Yourself So Much time.
What Is The McDonald’s Franchise Fee?
The initial franchise fee required to open a new McDonald’s restaurant is $45,000. This is comparable with the initial franchise fee required throughout most of the fast-food industry.
Those interested in joining McDonald’s through the purchasing of an existing restaurant must also pay the initial franchise fee, however, total cost is usually significantly lower than for those starting a brand new location. Those expenses will be determined by the franchise’s profitability, renovation needs, and sales volume.
How Much Does A McDonald’s Franchise Owner Make A Year?
The average McDonald’s franchise owner earns around $150,000 annually, though this can vary based on location and experience. Franchises in busy, densely populated areas tend to generate more revenue.
On average, a McDonald’s franchise in the U.S. brings in about $2.8 million in annual revenue. After paying ongoing fees, such as a 4% royalty and 4% marketing fee, and covering operational costs, franchisees should still expect a profitable return on investment.
The expected timeframe for a new McDonald’s franchisee to recoup their costs and begin seeing profits is a relatively low one to two years.