Food & Beverage · registry year 2024 · HQ IL

McDonald's Franchise

A McDonald's Corp brand operating in the food & beverage sector, franchising since 1953. According to the 2024 FDD filing for McDonald's, this is an editorial comparison record; it does not reproduce the brand's current FDD.

$1.0M – $2.2M
Initial investment · Higher entry cost
4.0%
Royalty rate · Below-average royalty
40,275
Total locations · Large network
$2.9M
Avg unit revenue · Above-average unit revenue

FDD outlay schedule

Registry mcdonald-s McDonald's

McDonald's needs $1.0M–$2.2M to open and charges a 4.0% royalty - an entry cost above the typical food & beverage franchise.

  • LO $1.0M
  • HI $2.2M
  • FEE $45K
  • ROY 4.0%
  • UNT 40,275
  • I19 Disclosed
  • INV# #32/223
  • UNT# #2/223

Nearest Item 7 peer: Perkins Restaurant & Bakery ($1.0M)

McDonald's (this)$1.0MPerkins Restaurant & Bakery$1.0MFriendly's$1.0MDairy Queen$1.1MEl Pollo Loco$1.1MWhataburger$1.1M
McDonald's Item 7 listed-low neighbourhood vs nearest food & beverage peers

Same-sector Item 7 neighbourhood for McDonald's (registry year 2024). Listed lows only - not a profit, cost-of-living, or suitability claim. Verify the current FDD before relying on these figures. How we place brands →

Franchise Opportunity Health Score

How healthy and transparent McDonald's's franchise system looks, from 2 of 2 tracked dimensions.

64 D
  • Network momentum 0.6% net unit growth (YoY) 27/100 · F
  • Financial disclosure Item 19 disclosed 100/100 · A

Benchmarked against the 223-brand tracked corpus (p10-p90 range per dimension); a higher score means a growing unit count and a disclosed Item 19. See how we place brands.

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Where McDonald's's investment ranks nationally

McDonald's's listed Item 7 low of $1.0M against every one of the 218 tracked franchise brands with a disclosed initial investment. Listed figures only, verify in the current FDD before relying on them.

McDonald's vs all tracked franchise brands by listed investment

Initial investment low (FDD Item 7), PlainFranchise brand corpus

$1,008,000 Higher than most higher than 85% of 218 franchise brands

Franchise brands, banded by listed Item 7 low

Each bar is a $0.001K-wide band; taller bars hold more franchise brands. The dashed line + filled bar mark this entry. Hover or tap any bar for its full count and share, and where it sits relative to this entry.

Source PlainFranchise editorial comparison registry · 2024-12-31

Investment Overview

Investment Range $1.0M – $2.2M
Franchise Fee
$45K
Ad Fund Rate
4.0%

Revenue Data (Item 19)

Item 19 Disclosed Franchisor provided financial performance data
Average Revenue
$2.9M
gross revenue per location

* Revenue figures are gross revenue (sales), not profit. This registry does not report operating costs or profit.

Network Size & Growth

39,747
Franchised
528
Company-Owned
+1200
Opened (Last Year)

Net Growth Rate

Year-over-year unit change

0.62% growth

950 locations closed in the last reporting year

Quick Facts

Subsector
quick service restaurant
Founded
1940
Franchising Since
1953
Headquarters
IL
FDD Year
2024
Item 19
Disclosed

Compare

Compare McDonald's against other franchises side-by-side

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Important Notice · McDonald's

This McDonald's page is a registry comparison record, not a verified FDD extract. It does not establish suitability, operating costs, profitability, or expected results for McDonald's.

Large-network capital outlay for McDonald's

Signature read: 40,275 locations · Item 7 low $1.0M

McDonald's, a McDonald's Corp franchise, has been franchising since 1953 - 13 years after the concept was founded in 1940 , currently with 40,275 total locations (39,747 franchised, 528 company-owned; 99% of the recorded total is franchised) in the food & beverage sector, headquartered in IL. The registry records a total initial investment between $1.0M and $2.2M, recorded as a low-to-high range in the registry. The registry records a separate franchise-fee field of $45K and does not list every Item 7 component in this summary.

Ongoing royalties run 4.0% of gross sales; the registry also records a 4.0% advertising-fund field, for a 8.0% arithmetic total. McDonald's has a recorded Item 19 financial-performance field; Item 19 disclosure is voluntary under the FTC Franchise Rule. The reported average gross revenue per location is $2.9M; multiplying the reported average by the listed royalty rate gives $116K as an arithmetic illustration only. Revenue is distinct from profit, and the registry does not provide a complete operating-cost record.

Network momentum is currently positive: McDonald's added units at a 0.6% net rate year-over-year (1200 openings, 950 closures). The count describes the latest reported period only; the underlying Item 20 tables provide the fuller disclosure context.

Frequently Asked Questions

How much does a McDonald's franchise cost?
The registry lists total initial investment of $1.0M to $2.2M for a McDonald's franchise. That includes an initial franchise fee of $45K. Ongoing royalties are 4.0% of gross sales.
How many McDonald's locations are there?
There are 40,275 McDonald's locations in operation, of which 39,747 are franchised and 528 company-owned. The network is growing at 0.6% year-over-year.
What are the ongoing fees for a McDonald's franchise?
McDonald's charges a 4.0% royalty on gross sales. A further 4.0% goes to the national advertising fund. Both listed fee fields are separate from the listed initial-investment range.

Related reading for McDonald's: Understanding FDDs , McDonald's lists Item 19 revenue here, how Item 19 fits the 23-item FDD.

McDonald's among nearby food & beverage registry records: listed entry cost and network size Scatter plot of 11 data points. -10000 locations0 locations10000 locations20000 locations30000 locations40000 locations50000 locations $800k$1000k$1200k$1400k Listed initial investment low ($000) Total locations (Item 20) McDonald'sFriendly'sPerkins Restaurant & BakeryDairy QueenEl Pollo LocoWhataburgerPanera BreadSizzlerDel TacoSonic Drive-InDenny's
McDonald's among nearby food & beverage registry records: listed entry cost and network size

Snapshot uses the registry's listed Item 7 initial-investment low and Item 20 location-count fields. It is a descriptive comparison, not a ranking or investment recommendation.

How McDonald's's Item 7 and Item 19 fields are labeled (expand)

Nationwide brands with similar investment or network size

Two data-derived peer sets for McDonald's , both outside HQ state IL : nearest Item 7 lows and nearest total-location counts, not the same-sector roster below.

What to do with this

McDonald's at a glance, drawn from the same figures above.

  • McDonald's scores 64/100 (D) on our composite opportunity read, combining net unit growth and Item 19 financial-disclosure transparency.
  • Its $1.0M – $2.2M entry cost runs above the typical food & beverage franchise.
  • Ranks #32 of 223 listed franchises by initial investment. See rankings
  • Perkins Restaurant & Bakery sits at a comparable investment level ($1.0M) in the same sector. Compare

Editorial comparison registry, not a source-linked FDD record. Verify the current FDD before relying on any figure.

Editorial comparison registry; a source filing is not linked to this record. Verify the current FDD before relying on a figure.

Source: PlainFranchise editorial registry Record-level FDD source link and retrieval date pending