McDonald's Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$45,000
Investment required
$521,000 - $2,503,000
Royalty fee
4.00%

McDonald's: Leading the Way in Global Fast-Food Innovation

McDonald's, the globally renowned fast-food giant symbolized by its Golden Arches, was established in 1940 by Richard and Maurice McDonald in San Bernardino, California. Originally a barbecue joint, it transformed into a hamburger stand in 1948, utilizing an efficient production line system.

The pivotal moment in the brand's franchising history came in 1955 when Ray Kroc, a milkshake mixer salesman, launched the first franchise in Des Plaines, Illinois. Kroc later purchased the company from the McDonald brothers, spearheading its worldwide growth.

Now headquartered in Chicago, Illinois, McDonald's operates as one of the largest fast-food chains, catering to about 68 million customers daily in 119 countries.

McDonald's is celebrated for its diverse menu, featuring legendary items such as the Big Mac, Chicken McNuggets, and its famously crispy fries, along with Happy Meals, various breakfast options, and more. The brand stands out in the fast-food industry through its unwavering commitment to service speed, menu innovation, and strong global brand identity.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

McDonald's offers 3 types of franchises:

Franchise Type Initial Investment Range
Traditional McDonald’s restaurant $1,469,000 to $2,503,000
STO and STR Locations $1,012,500 to $1,708,500
Satellites $521,000 to $854,000

We are summarizing below the main costs associated with opening a traditional McDonald’s restaurant franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Traditional McDonald’s Restaurant

Type of Expenditure Amount
Initial Franchise Fee $45,000
Real Estate and Building – 3 Months’ rent $0 to $313,000
Signs, Seating, Equipment, and Decor $1,100,000 to $1,650,000
Opening Inventory $20,000 to $39,000
Miscellaneous Opening Expenses $51,000 to $62,000
Utilities Travel and Living Expenses While Traveling $3,000 to $39,000
Additional Funds – 3 Months $250,000 to $355,000
Total $1,469,000 to $2,503,000

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Number of units

2023
Franchised units

13,022

12,775

12,764

Company-owned units

657

661

691

Total units

13,679

13,436

13,455

Franchise Disclosure Document

Training 

McDonald's offers a comprehensive training program for its franchisees. Here are the essential details:

Hamburger University:

McDonald's runs Hamburger University (HU), the global training hub for its system. Franchisees and their management teams, both current and future, must attend Hamburger University or other designated training centers. McDonald's covers the costs associated with maintaining Hamburger University and other training centers, including overhead, staff salaries, materials, and technical training tools.

Basic and Advanced Training:

Franchisees receive both basic and advanced training on operating a McDonald's restaurant. The training encompasses all aspects of running a McDonald's restaurant, such as guest satisfaction, operational standards, financial management, and leadership.

Restaurant Leadership Curriculum:

Franchisees must complete the foundational Restaurant Leadership curriculum to qualify for operating a McDonald's restaurant. Current franchisees are exempt from completing this curriculum when acquiring additional restaurants.

Territory Protection

Franchisees receive a limited authorization to run a McDonald's Restaurant at a specific site designated by McDonald's. These rights are confined to the approved business location and any additional locations specified under an Additional Business Amendment to the Franchise Agreement.

Should McDonald's provide the option to operate a food truck as an extension of an existing McDonald's Restaurant, the food truck must only be used at locations that have been registered and approved by McDonald's.

This arrangement means that franchisees have the right to operate only at their designated location(s) and do not possess an exclusive territory. Their operations are strictly limited to the approved sites.

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