McDonald’s Franchise Cost Breakdown (2026): Fees, Profit & Earnings

McDonald’s Franchise Cost Breakdown (2026): What It Really Costs, What You Can Make, and If It’s Worth It

If you’ve ever searched “how much does a McDonald’s franchise cost”, you’re not alone.

Every year, tens of thousands of aspiring business owners look into McDonald’s because it feels like the safest bet in franchising. It’s familiar. It’s everywhere. And it’s one of the few brands where customers show up whether the economy is booming or slowing down.

But once you move past the logo and the Golden Arches, the real question becomes much more practical:

What does the McDonald’s franchise breakdown actually look like in 2026—and does the math work?

This guide walks through the real costs, real earnings, and real expectations, using official McDonald’s Franchise Disclosure Document (FDD) data, explained in plain English.

A Quick Look at the McDonald’s Franchise Breakdown

Before diving into the details, here’s the big-picture view most people want:

• McDonald’s franchises are expensive, but proven
• Startup costs typically range from $1.4 million to $2.5 million
• Owners must have $500,000 in liquid capital
• Average U.S. locations generate around $3 million per year
• Well-run restaurants can produce six-figure owner income

McDonald’s isn’t a shortcut to wealth—but it is one of the most predictable franchise models in the U.S.

Is McDonald’s Really a Franchise?

Yes — and one of the most established franchise systems ever built.

McDonald’s began franchising in the 1950s and has spent decades refining a model that prioritizes consistency, control, and long-term brand strength. Today, more than 90% of McDonald’s U.S. restaurants are franchised, not corporate-owned.

What surprises many first-time buyers is how McDonald’s structures ownership.

McDonald’s typically owns or controls the real estate, while franchisees operate the business. That means you’re not just paying royalties—you’re also paying rent to McDonald’s. In return, you’re operating under one of the most recognizable brands on the planet.

How Many McDonald’s Locations Are There in the U.S.?

As of the most recent FDD data:

• There are 13,000+ McDonald’s locations in the United States
• Roughly 95% are franchised
• Corporate-owned stores are mostly used for testing and innovation

McDonald’s growth today is less about opening thousands of new stores and more about maximizing performance, remodeling locations, and expanding digital and delivery sales.

The McDonald’s Franchise Cost Breakdown (2026)

This is where most people pause — and for good reason.

According to the official McDonald’s Franchise Disclosure Document, here’s what it takes to open a McDonald’s in the U.S.

Total Investment Breakdown

• Initial franchise fee: $45,000
• Total initial investment: $1,366,000 to $2,450,000
• Required liquid capital: $500,000 minimum
• Net worth requirement: No formal minimum listed

That wide range depends on:

• Whether you’re acquiring an existing restaurant or building new
• Local construction and labor costs
• Restaurant size and format

This makes McDonald’s one of the highest-cost franchise opportunities available—but also one of the most established.

Ongoing Fees: Where the Money Goes

Once your restaurant is open, McDonald’s takes a percentage of gross sales.

Here’s the ongoing franchise fee breakdown:

• Royalty fee: 4% of gross sales
• Marketing/service fee: ~4% of gross sales
• Rent: Paid to McDonald’s (varies by location and sales volume)

These fees are non-negotiable, but they also fund the systems, branding, and marketing power that keep customers coming back.

Training: Why McDonald’s Takes So Long to Approve Owners

McDonald’s doesn’t rush new franchisees.

Before you’re approved, you’ll complete 12–18 months of hands-on training, including time at Hamburger University, McDonald’s internal training program.

This isn’t busywork. McDonald’s expects owners to understand:

• Restaurant operations
• Labor management
• Financial controls
• Multi-unit leadership

It’s demanding—but it’s one reason performance across the system stays consistent.

Revenue: How Much Does a McDonald’s Franchise Make?

According to system-wide averages referenced in the FDD:

• Average U.S. McDonald’s annual revenue:
  Approximately $2.8 million to $3.1 million per location

Some locations perform far above that, while others fall below. Traffic patterns, labor costs, and management quality make a massive difference.

Profit: What the Numbers Look Like After Expenses

Revenue is impressive—but profit is what actually matters.

After labor, food costs, rent, royalties, and operating expenses, many McDonald’s franchises operate in the range of:

• 10%–15% operating margins
• Estimated annual profit: $250,000 to $450,000+

These are not guarantees—but they are realistic outcomes for well-managed restaurants.

How Much Do McDonald’s Franchise Owners Actually Make?

For single-unit owner-operators, annual income often lands around:

• $150,000 to $300,000+ per year

Owners with multiple locations can earn significantly more, but that comes with:

• Higher capital requirements
• Larger teams
• More operational complexity

McDonald’s ownership is a business, not a passive investment.

Is Owning a McDonald’s Franchise Worth It in 2026?

For the right person, yes.

McDonald’s remains profitable because:

• The brand drives built-in demand
• The systems are proven
• The business performs well even in uncertain economies

The downside?

• The upfront cost is steep
• The rules are strict
• You’re buying stability, not creativity

If you want freedom to experiment, McDonald’s isn’t ideal. If you want predictability, scale, and long-term durability, it’s hard to beat.

Franchise Empire’s Take

McDonald’s is not the franchise we recommend for most first-time buyers—but it is one of the strongest franchises in the world.

If you already have capital, operational discipline, and a long-term mindset, McDonald’s offers something few franchises can: consistency at scale. You’re not betting on a trend. You’re buying into a machine that’s been refined for decades.

That said, many entrepreneurs are better served starting with lower-cost franchises that still generate strong cash flow, then scaling up over time.

McDonald’s isn’t the only path to franchise success—it’s just the most recognizable one.

Want to Compare Smarter Franchise Options?

If McDonald’s feels like too much upfront, we’ve broken down lower-cost franchises that can still generate $1M+ in annual revenue.

👉 Download: 5 Low-Cost Franchises That Make $1,000,000 (Backed by Data)
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