McDonald's
A McDonald’s franchise typically costs between $1,472,000 and $2,807,000 to open, with a $45,000 franchise fee and an ongoing royalty of 4% to 5%.
Franchise Inspectors has verified from McDonald's latest 2026 FDD that the average domestic traditional location generates about $4,088,000 in annual sales. The lowest unit volume was about $1,063,000 and the highest unit volume was about $20,410,000.
How Much Does It Cost?
Total Investment
$1,472,000 - $2,807,000
Franchise Fee
$45,000
Royalty
4-5%
Marketing Ad Fund
4%
How Much Do Owners Make?
~$1,063,000
LOWEST GROSS REVENUE
~$4,088,000
AVERAGE GROSS REVENUE
~$20,410,000
highest GROSS REVENUE
McDonald's Retention Amongst Company-Owned and Franchise Owned Outlets
Corporate Units
Franchised Units
Need Help Evaluating a Franchise?
McDonald's Franchise Quick Facts
- Total Investment: $1,472,000 to $2,807,000
- Franchise Fee: $45,000
- Royalty: 4-5%
- Marketing Fee: 4%
- Average Revenue: $4,088,000
- Lowest Revenue: $1,063,000
- Highest Revenue: $20,421,000
- Total Outlets: 13,706
- Length of Term: 20 years
How much does a McDonald's franchise owner make?
According to the FDD, McDonald’s does not disclose owner income or net profit. However, it does provide pro forma financial data based on restaurants generating between $3.0 million and $3.4 million in annual sales. See screenshots above.
Based on that data, operating income before occupancy costs ranges from approximately $732,000 to $864,000, depending on sales volume. This excludes major expenses like rent, royalties, interest, and taxes, which can significantly impact actual earnings.
How long does it take to open a McDonald’s franchise?
Opening a McDonald’s location can take 12 months or longer. This timeline depends on site selection, approvals, construction, and McDonald’s internal process, which is typically more involved than most franchises. The FDD does not have a hard cut off time that you must be open.
Is McDonald's semi-absentee?
No. This is not a hands-off type of business.
McDonald’s locations are high-volume and operationally demanding. Most franchisees are either heavily involved day-to-day or have a full-time, experienced team in place to run the store.
What are the biggest risks of owning a McDonald's franchise?
The biggest challenges come down to the size and structure of the business.
It requires a large upfront investment, ongoing fees tied to sales, and consistent execution to maintain performance. On top of that, key costs like labor and occupancy can vary widely, which makes actual profitability less predictable than the pro forma numbers suggest.
This page contains information derived from the 2026 Franchise Disclosure Document (FDD). We are not making any financial claims, projections, or guarantees. The data shown reflects historical information provided by the franchisor and should not be relied upon as an indication of future performance. Individual results will vary.
