About McDonald's
McDonald's is the world's largest fast-food chain with over 40,000 locations in more than 100 countries. Founded in 1940 and franchising since 1953, McDonald's has perfected the franchise model over seven decades. The brand generates over $23 billion in annual system-wide sales, making it the most recognized fast-food brand on the planet.
To become a McDonald's franchisee, candidates must have at least $500,000 in non-borrowed liquid assets. The process is highly competitive — McDonald's receives thousands of applications annually and only approves a small percentage. Most new franchisees start by purchasing an existing location rather than building new, which can significantly impact the total investment required.
Frequently Asked Questions
How much does a McDonald's franchise cost?
The initial franchise fee is $45,000. Total investment ranges from $1 million to $2.3 million depending on location, size, and whether you're buying an existing restaurant or building new.
What are the ongoing fees for a McDonald's franchise?
McDonald's charges a 4% royalty fee on gross sales plus a 4% marketing/advertising fund contribution, totaling 8% of gross sales monthly.
How much liquid capital do I need for McDonald's?
McDonald's requires a minimum of $500,000 in non-borrowed, liquid assets. This is one of the highest requirements in the industry.
How long is a McDonald's franchise agreement?
Standard McDonald's franchise agreements run for 20 years with the option to renew.
Is McDonald's a good franchise investment?
McDonald's franchises generate strong average unit volumes (AUVs) of approximately $3.3 million annually. However, high entry costs and strict requirements mean it's best suited for well-capitalized investors.