McDonald's Franchise Cost & Opportunities 2024 (2024)

FAQs

How much can a McDonald's franchise owner make a year? ›

On average, however, owner-operators can earn anywhere from $50,000 to $150,000 per year per store after accounting for expenses and royalties paid to McDonald's corporate. So, someone with multiple successful franchises could potentially earn a substantial income.

The cost to open a McDonald's franchise can range from $1 million to $2.3 million, depending on the location and size of the restaurant. The franchise fee is $45,000, and franchisees also pay a monthly service fee of 4% of gross sales. In addition, franchisees pay ongoing royalties and brand fund fees.

The first step in starting a McDonald's franchise is to meet the company's requirements. These requirements include having a minimum net worth of $500,000 and liquid assets of at least $250,000. These numbers are on the lower end of requirements at analogous fast food-chains.

How long is it? We require all franchisees to complete our training program prior to being allowed to purchase restaurants. Generally, the training is anywhere from 6 to 12 months and can be completed on a part-time basis.

For the first time in about 30 years, McDonald's is increasing its royalty fee for franchise operators opening new restaurants in the US and Canada. Starting on January 1, those operators will have to pay a 5% royalty rate, up from 4%, according to the company. The royalty fee is a monthly percentage of sales.

Generally, we require a minimum of $500,000 of non-borrowed personal resources to consider you for a McDonald's franchise.

Through intensive, hands-on training programs, McDonald's helps its Owner/Operators build successful businesses and bright futures. Being a McDonald's Owner / Operator offers you many advantages — from the training and the support of a solid organization, to the opportunity to own a thriving and successful business.

However, a record 1,750 US restaurants changed hands in 2021 and the number of US outlets continues to shrink even as the company grows in international markets. However, some sources give a failure rate of less than 0.5%, which is very low.

Who owns the most McDonald's franchises? ›

Arcos Dorados is the world's largest independent McDonald's franchisee, operating the largest quick service restaurant chain in Latin America and the Caribbean.

How much can a McDonald's franchise owner expect to earn? The average gross sales for a McDonald's franchise are approximately $3.51 million per location. Assuming a 15% operating profit margin, $3.51 million yearly revenue can result in $526,000 EBITDA annually.

How much does a Mcdonalds Franchise make? As of Sep 9, 2024, the average annual pay for a Mcdonalds Franchise in the United States is $68,748 a year. Just in case you need a simple salary calculator, that works out to be approximately $33.05 an hour. This is the equivalent of $1,322/week or $5,729/month.

The bulk of Kempczinski's pay package came in the form of stock and option awards, which total about $13 million. He was paid a base salary of $1.4 million and received just over $4 million in incentive compensation—the bonus was about $200,000 less than he received in 2022.

They assume food franchise owners are the biggest moneymakers, but according to a Franchise Business Review report, 51.5 percent of food franchises earn profits of less than $50,000 a year and only about 7 percent of food franchises have profits over $250,000.

McDonald's annual gross profit for 2023 was $14.563B, a 10.26% increase from 2022. McDonald's annual gross profit for 2022 was $13.207B, a 4.98% increase from 2021. McDonald's annual gross profit for 2021 was $12.58B, a 29% increase from 2020.