Summary

General

Industry
A general sector of the franchise economy that helps characterize franchise concepts offering similar goods and/or services
Restaurants & Food
Category
A subset sector of industry characterizing franchise concepts offering similar goods and/or services
Quick Service

Year of Founding

1955

Works with Franchise Brokers

Seeking Franchisees?

Remote Management?
Indicates if the business can be managed by a manager remotely

Fees & Financing

Royalty Fee
Ongoing fee paid by a franchisee to the franchisor as part of the franchise agreement
5%
Marketing Fee
Amount of gross revenues required by the franchisor for marketing purposes
4%

Franchise Fee

$45,000

Investment Range

$523K-$2.64M

SBA Loan Approved

Location units

Total U.S. Locations

13,457

U.S. Franchised Units

12,772

U.S. Corporate Units

685

Headquarters (City, State)

Chicago, IL

Square Footage

Retail Location?

Other

Item 19 - Franchise Financials

Yes

Started Offering Franchises

1955

Issuance of FDD Data

2024-05-01

E-2 Visa Eligibility

Job Count ?

Key Financial Indicators

Figure
Industry %
Percentage of franchises with figures less than the figure for this franchise
Franchise Payback Period
Calculated based on ramp-up time, average unit volume, and profitability
Loan Success Ratio
# of SBA loans paid in full to loans that were charged off
Loan Default Rate
# of SBA loans recognized as a loss divided by total loans
Sales-to-Investment Ratio
Indicator of general economics for a franchise
Resale Value
Based on the earnings and multiples for this industry
Resale Value-to-Investment
Higher ratio indicates higher potential for returns
Franchise Cost
Franchise Fee

%8

%8

%8

%8

%8

%8

%8

%8

%8

%8

%8

%8

%8

%8

%8

%8

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Franchise Disclosure Document Summary

Download the latest Franchise Disclosure Documents (FDD’s) for this franchise.

Access full FDD directory
Reported and Estimated Franchise Gross Sales and Earnings

Find available key financial metrics below.

Year

Gross Sales
Reported or estimated gross sales, representing sales generated by a single franchise unit over a period of one year.

Amount for the period Y/Y % Change

Earnings (Owner Operator)
Average expected earnings, based on industry margins, for a single franchise unit where the owner is the primary operator.

Amount for the period Y/Y % Change

Earnings (Semi-Absentee)
Average expected earnings, based on industry margins, for a single franchise unit where the owner is not the primary operator.

Amount for the period Y/Y % Change

2023

2022

2021

2020

2019

%8

%8

%8

%8

%8

%8

%8

%8

%8

%8

%8

%8

%8

%8

%8

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Franchise Openings and Closures

Year Start of year Units opened Units closed Reacquired by franchisor Total end of year
2023 12,764 128 107 13 12,772
2022 12,775 84 48 47 12,764
2021 13,022 101 311 37 12,775
2020 13,185 27 188 2 13,022
2019 13,229 78 107 15 13,185
2018 13,145 240 156 0 13,229
2017 13,047 266 168 0 13,145
2016 12,894 309 156 0 13,047

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Key Metrics & Financials

Detailed Metrics

Detailed Franchise Metrics are metrics calculated and reviewed by Vetted Biz.

You can find the available metrics for McDonald's below.

“N/A” or Not Applicable results mean that there is not enough data available to compute a precise rate or that the result is not mathematically computable.

When results are not mathematically computable, you should pay attention to the absolute values (#) instead of the percentage rate itself.

Franchise Health Metrics

Growth Rate
Measures the overall growth of units for the franchise divided by the total units during a given time period

1 year / 3 years

Failure Rate
Measures the overall number of units that failed divided by the total units for the franchise during a given time period

1 year / 3 years

Franchise for Sale Rate
Measures the number of units that were transferred or reacquired by the franchisor divided by the total units for the franchise during a given time period

1 year / 3 years

McDonald's

Industry median

All franchises median

1% / -1%

8% / 8%

8% / 8%

1% / 4%

8% / 8%

8% / 8%

6% / 29%

8% / 8%

8% / 8%

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Franchise Viability Benchmarking

Investment Midpoint

Franchise Fee Midpoint

Franchise Payback Period

Gross sales

Royalty Fee

McDonald's

Industry median

All franchises median

$1,582,250

$8888

$8888

$45,000

$8,888

$8,888

8.8 years

8.8 years

8.8 years

$8,888

$8,888

$8,888

5%

8%

8%

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Franchisor Financials

Year

Franchisor Revenue

Amount for the period Y/Y % Change

Franchisor Royalty Fees

Amount for the period Y/Y % Change

Franchisor EBITDA

Amount for the period Y/Y % Change

Franchisor Net Income (Loss)

Amount for the period Y/Y % Change

2022

2021

2020

2019

%8

%8

%8

%8

%8

%8

%8

%8

%8

%8

%8

%8

%8

%8

%8

%8

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Item 19 – Financial Performance Representations

Historical financial performance representations

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Franchise Financials

Franchisor company financial information and financial performance representations, if disclosed by the franchisor.

Unlock Vetted Member access
Litigation & Bankruptcies

Lawsuits and Litigation

Pending and concluded litigation

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Bankruptcies

Disclosed bankruptcy information

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Content Library

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Contacts & Social Media
Phone
(***) ***-***
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Corporate Email
m***@****.com
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State
Illinois
City
Chicago
Zip Code
60607
Mailing adress
110 N. Carpenter Street

What to know about McDonald's franchise?

Since its inception in 1955 , McDonald's franchise has stood as a cornerstone in the global Restaurants & Food. With a pioneering role in the franchise business, McDonald's has consistently set the standard for excellence and innovation. It's worth noting that McDonald's began offering franchises in 1955, marking a significant milestone in the company's history.

Additional Details

The cost of opening a McDonald's franchise can vary depending on a number of factors. On average, you can expect to invest between $523K-$2.64M. This range includes expenses like the initial franchise fee, equipment, signage, seating, and other essential costs.

The profitability of a McDonald's franchise can vary widely depending on factors such as location, operating costs, management efficiency, and local market conditions. If you are interested in knowing more about how profitable a McDonald's franchise is and its average unit volume, make sure to click here and become a Vetted Member to unlock access.

McDonald's franchise owners generally make between $460,440 - $575,550 per year. However, this can vary based on factors like location and experience. Owners in expensive cities like New York or San Francisco tend to earn more. Additionally, seasoned operators typically earn more than new franchisees.

McDonald's operates a vast network of franchise locations, with a total of 13,457 in the United States alone. Out of these, 12,772 are franchised units, while 685 are corporate-owned. This extensive franchise presence showcases the brand's widespread reach and popularity in the U.S. market.

The franchise fee for McDonald's typically ranges from 45000 to 45000. Additionally, franchisees are required to pay a royalty fee of 5% and a marketing fee of 4% of their monthly sales. These fees contribute to the ongoing support, marketing efforts, and brand development provided by McDonald's to its franchise network.

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