Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
  • Firehouse Subs
  • Jimmy John's
  • Massage Envy
  • Menchie's
  • Orange Leaf Frozen Yogurt
  • Planet Fitness
  • The UPS Store
  • Yogurt Land
  • And Hundreds More...

No, thanks. I'm not interested in uncovering the actual earnings of hundreds of franchises at this time.

Considering a McDonald’s Franchise? Don’t Overlook These 29 Important Franchise Fees

by Franchise Chatter on July 8, 2017

in Franchise Fees, Hamburger Franchise



Franchise Chatter Membership Information


Don't Invest in a Franchise Until You Check Out This List

If you are considering a McDonald’s franchise, don’t get blindsided by these 29 important franchise fees (from the initial franchise fee, to the royalty fee, to 27 other fees found in Items 5 and 6 of McDonald’s 2017 FDD).

1.  Initial Franchise Fee:  $45,000

  • All franchisees pay a $45,000 lump sum initial franchise fee on the opening of the restaurant, except for:
  • (a) the McOpCo companies, which do not pay any initial franchise fee;
  • (b) franchisees of locations having 10 years or less of real estate tenure will pay a prorated initial franchise fee based on the term of the franchise;
  • (c) in situations where McDonald’s and a franchisee mutually agree on a term of 10 years or less, after considering such factors as the restaurant location and its business potential, franchisees will pay a prorated initial fee based on the term of the franchise;
  • (d) franchisees who rebuild or relocate their restaurants will pay the initial franchise fee less a credit for a portion of the previously paid initial franchise fee, on the earlier of the first of the month after the seventh year after the opening of the rebuilt or relocated restaurant, or the end of the previous franchise;
  • (e) franchisees of Satellite locations, who are required to pay a $500 initial franchise fee upon opening of the Satellite (except franchisees of Walmart locations, who pay no initial franchise fee) and an annual fee;
  • (f) franchisees of STO (small town oil) and STR (small town retail) locations pay a $22,500 lump sum initial franchise fee; and
  • (g) franchisees who have an option to purchase assets under a BFL (business facilities lease) pay the $45,000 initial franchise fee when they exercise the option.
  • The entire initial franchise fee will be refunded if the restaurant construction is not completed within 1 year of the date the Franchise Agreement is signed. There are no refunds under other circumstances.

2.  Service Fee:  4% of Gross Sales

  • Due Date:  Payable monthly on the 10th day of the next month.
  • “Gross Sales” include all revenues from your sales based upon all business conducted at or from the restaurant, but exclude sales or use tax.

3.  Rent:  varies



  • Due Date:  Base Rent – payable on the 1st day of the month. Pass-Thru Rent, if applicable – payable on the 1st day of the month. Percentage Rent – payable monthly on the 10th day of the next month.
  • Where McDonald’s leases the land and/or building, it will pass thru any rent escalations which occur throughout the lease term as pass-thru rent.

4.  Advertising and Promotion:  not less than 4% of Gross Sales

  • Due Date:  Spent during each calendar year.
  • Most franchisees participate in local advertising cooperatives and the national advertising fund (“OPNAD”).
  • The contribution rates are established by the franchisees and, depending upon then-current advertising costs and needs, may or may not exceed the required 4% of Gross Sales.
  • “Grand Opening” promotions are strongly recommended.

5.  Audit/Inspection Fee:  cost of audit

  • Due Date:  Immediately upon billing.
  • Payable only if audit/inspection fee shows an understatement of at least 2% of Gross Sales.

6.  Satellite Annual Fee:  $500 to $2,500

  • Due Date:  On each anniversary of opening or on a fixed date annually.

7.  Satellite Rent:  varies

  • Due Date:  Payable monthly on the 10th day of the next month.

8.  STO and STR Rent:  varies



  • Due Date:  Same as Base, Pass-Thru, and Percentage Rent above.

9.  BFL Rent:  varies

  • Due Date:  Same as Rent above.

10.  Relocation Contribution:  $50,000

  • Due Date:  On opening of the relocated restaurant.

11.  POS Releases Fee:  $1,000 integration fee (one-time fee); $500 annual integration fee

  • Due Date:  Payable annually by check (August) or drafted semiannually (August/November).
  • You pay the annual fee to McDonald’s for the integration of your store system platform.

12.  Restaurant File Maintenance (RFM) Fee:  $150

  • Due Date:  Payable annually by check (August) or drafted semiannually (August/November).
  • You pay this fee to McDonald’s for the annual hosting and maintenance of RFM.

13.  R2D2 Software Maintenance Fee:  $125

  • Due Date:  Payable annually by check (August) or drafted semiannually (August/November).
  • You pay this fee to McDonald’s for the use of its restaurant data diagnostic system.

14.  NP Software Fee:  $1,600 license fee (one-time fee); $400 annual software maintenance fee

  • Due Date:  Payable annually by check (August) or drafted semiannually (August/November).
  • You pay the annual software maintenance fee to McDonald’s and it remits payment to RDI, McDonald’s affiliate.

15.  Integrated Cashless System Fee:  $216 license fee (one-time fee); $154 annual maintenance fee

  • Due Date:  Payable annually by check (August) or drafted semiannually (August/November).
  • You pay these fees to McDonald’s and it remits payment to a third-party supplier.

16.  Microsoft Subscription License:  $465

  • Due Date:  Payable annually by check (August) or drafted semiannually (August/November).
  • You pay this fee to McDonald’s and it remits payment to Microsoft.

17.  Endpoint Security Licenses and Managed Services:  $100

  • Due Date:  Payable annually by check (August) or drafted semiannually (August/November).
  • You pay this fee to McDonald’s and it remits payment to a third-party supplier.

18.  Learning Technologies (McD US):  $200

  • Due Date:  Payable annually by check.
  • You pay this fee to McDonald’s for the annual support and maintenance fee of OurLounge solution.

19.  Learning Technologies (McD Corp):  $170

  • Due Date:  Payable annually by check (August) or drafted semiannually (August/November).
  • You pay this fee to McDonald’s for the annual support and maintenance of Campus Fred solution.

20.  Restaurant System Management (RSM):  $250

  • Due Date:  Payable annually by check (August) or drafted semiannually (August/November).
  • You pay this fee to McDonald’s for the annual maintenance of RSM.

21.  Restaurant Integrated Data Movement (RIDM) Fee:  $75

  • Due Date:  Payable annually by check (August) or drafted semiannually (August/November).
  • You pay this fee to McDonald’s for the annual maintenance of RIDM.

22.  e*Restaurant Fee:  $54

  • Due Date:  Payable annually by check (August) or drafted semiannually (August/November).
  • You pay this fee to McDonald’s for the data hosting of integrated back-office suite of products.

23.  Identity Management Fee:  $75

  • Due Date:  Payable annually by check (August) or drafted semiannually (August/November).
  • You pay this fee to McDonald’s for the annual support and maintenance of restaurant crew identity security management software.

24.  Store Mail (email accounts) Fee:  $73.80

  • Due Date:  Payable annually within 30 days of billing.
  • You pay this fee to McDonald’s for annual email account support for using the us.stores.mcd.com domain.

25.  PCI Compliance/Security Fee:  $250

  • Due Date:  Payable annually by check (August) or drafted semiannually (August/November).
  • You pay this fee to McDonald’s to ensure your technology is secure and reliable.

26.  Restaurant Support Fee:  $475

  • Due Date:  Payable annually by check (August) or drafted semiannually (August/November).
  • You pay this fee to McDonald’s for providing technology support.

27.  ISP Migration Fee:  $300

  • Due Date:  Payable annually by check (August) or drafted semiannually (August/November).
  • You pay this fee to McDonald’s for the integration and customization of the integrated back-office suite of products.

28.  Digital (McD US):  $900 one-time cost; $390

  • Due Date:  Payable annually by check (August) or drafted semiannually (August/November).
  • You pay this fee to McDonald’s for supporting, enhancing, and localizing digital technology software.

29.  Digital (McD Corp):  $660

  • Due Date:  Payable annually by check (August) or drafted semiannually (August/November).
  • You pay this fee to McDonald’s for the annual maintenance, support, and hosting of digital technology software.

Franchise Matching Quiz



{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: