Updated October 3, 2021.
Detailed Estimates of McDonald’s Franchise Costs Based on Item 7 (Estimated Initial Investment) of McDonald’s 2021 Franchise Disclosure Document
1. Initial Franchise Fee: $45,000
- Franchisees who rebuild or relocate their restaurants will pay the initial franchise fee on the earlier of: (a) the first of the month after the seventh year after the opening of the rebuilt or relocated restaurant; or (b) the end of the previous franchise term.
2. Real Estate and Building – 3 Months’ Base Rent: $0 to $229,000
- McDonald’s acquires real estate and building and franchises the right to operate at the location. Amounts shown as rent are part of the overall economic package of fees described in Item 6 of the FDD.
- Special site restaurants may be higher.
3. Real Estate and Building – 3 Months’ Percentage Rent: 0% to 28%
4. Signs, Seating, Equipment, and Decor: $950,000 to $1,550,000
- Varies due to size of building, location, estimated sales volume, transportation charges, and sales tax.
- If you request changes to the building, payment for the requested changes may be required before signing the Franchise Agreement.
- The cost of current Store System ranges from $108,000 to $118,500, which includes the POS, Integrated Cashless System, kiosks, table locators, computer hardware, software, and related equipment.
5. Opening Inventory: $20,000 to $39,000
6. Miscellaneous Opening Expenses: $46,500 to $58,195
7. Travel and Living Expenses While Traveling: $3,000 to $37,100
- Cost varies due to distances from Field Offices and headquarters in Chicago, Illinois, and costs of living in various areas of the country.
8. Additional Funds – 3 Months: $250,000 to $355,000
- You may or may not need capital to support ongoing expenses, such as employee wages, utilities, payroll taxes, legal and accounting fees, travel, advertising, promotion, outside services, linen, operating supplies, small equipment, maintenance and repair, office supplies, cash shortages, insurance, debt service, and non-product purchases, as well as additional opening capital for other variable costs.
- These figures are estimates and McDonald’s cannot guarantee that you will not have additional expenses starting the business.
9. Total: $1,314,500 to $2,313,295
- McDonald’s has relied on the combined 66 years of restaurant business experience that it and its predecessors have to compile these estimates.
- McDonald’s has offered and continues to offer for sale restaurants owned by McOpCo companies. McDonald’s had one sale of a restaurant by McOpCo in 2020, and that sale exceeded the high end of the initial investment range by $336,705.