How Many McDonald’s Franchises Are There?

McDonald’s has over 40,800 locations in over 100 countries. Approximately 93% Of McDonald’s franchise business worldwide are owned and operated by independent local business owners. By the end of 2027, the franchise plans to expand to 50,000 franchises around the world. If achieved, this period of franchise expansion will be the fastest unit growth in the history of McDonald’s. In 2023, McDonald’s introduced a spinoff franchise chain, CosMc’s, As part of a limited test, the first CosMc’s location opened in Bolingbrook, Illinois. The McDonald's franchise opportunities focuses on beverage creations with a small lineup of food, including a select few McDonald’s favorites. By the end of 2024, the brand plans to open approximately 10 CosMc’s pilot locations across the Dallas-Fort Worth and San Antonio metro areas.

How Much Does It Cost To Open a McDonald’s Franchise Business?

According to McDonald’s 2024 Franchise Disclosure Document (FDD), the estimated initial investment required to open a traditional McDonald’s franchise ranges from $1,470,500 to $2,642,000.

How Much Can McDonald’s Franchise Owners Make?

McDonald’s franchises business typically turn a profit, but the degree of profitability for a given McDonald’s hinges on area-specific factors like demographics, location and operational efficiency. Since many McDonald’s locations exist within other businesses, like a McDonald’s inside a theme park, for example, profitability remains heavily dependent on location. In January 2022, McDonald’s U.S. franchises reached record average cash flows as sales soared at locations around the world. CFO Kevin Ozan reported that U.S. franchisees reached an average of more than $500,000 per unit. This represents a growth of 50% over the previous three years and an increase of $125,000 since 2021. Item 19 of the 2024 FDD provides sales volume data for all corporate and franchised McDonald’s restaurants open for the entirety of FY 2023.

What is the McDonald's Franchise Business Model?

While McDonald’s is a widely recognized global brand, the vast majority of franchises — more than 80% worldwide and nearly 90% in the U.S. — are owned and operated by approximately 5,000 independent, small- and mid-sized franchisees. McDonald’s has the following types of franchise structures: Conventional Franchise: McDonald’s either owns the land or leases it for the long term under the conventional franchise model. Under the agreement, the franchisee pays for other items such as seating, equipment and décor. Development License or Affiliate: Under this type of franchise agreement, the franchisee also provides capital for real estate. Typically, under the agreement, McDonald’s does not invest capital and earns a royalty plus an initial fee. Additionally, McDonald’s offers four types of franchises: Traditional Franchise: This type of franchise is located in freestanding buildings, storefronts, food courts, and other locations. The franchisee operates a full-menu franchise, offering the public a high standard of quality and uniformity in food and service. Satellite Locations: This model is operated in places such as retail stores, strip centers, airports, universities, hospitals, and other diverse locations. These locations serve a scaled-down menu of a traditional McDonald’s Franchise and, in some cases, may also serve non-McDonald’s trademarked products. STO and STR Locations: ‘Small Town Oil’ locations are located in gas stations or convenience stores and operate a full-menu McDonald’s franchise within the shared space. ‘Small Town Retail’ are locations that anchor a small retail center in rural communities. BFL Franchises: ‘Business Facilities Lease’ franchises grant franchises with leases that include the business facilities. One notable difference between the McDonald’s franchise business model and many other franchise systems is that McDonald’s itself acquires the real estate and building for its locations, then franchises the right to operate the location with the franchisee paying rent to McDonald’s. In a large percentage of other cases, the franchisees of a system are responsible for acquiring the real estate, as well as the construction of the building or any necessary renovations

What does McDonald’s look for in a franchisee?

McDonald's actively seeks franchisees who exhibit exceptional leadership qualities, sound business sense, and a dedication to operational excellence. To achieve the investment criteria set by the organization, franchisees must be financially stable. Relevant work experience is a major plus, particularly in management or retail. Successful franchisees have passion and a vision that includes development and a strong collaboration with McDonald's

How do I apply for a McDonald’s franchise?

Go to the McDonald's Franchise website and fill out the online form to apply for a McDonald's franchise. Make sure you have the necessary funds and relevant work experience. Throughout the process, you will be asked to provide personal and financial facts, answer interview questions, and display your business knowledge. If you make it this far, you'll have to prove yourself via a series of tests and an intensive training program designed to get you ready to operate your franchise. To demonstrate your dedication to being a successful McDonald's franchisee, remain active and assertive throughout.

How long does the franchise approval process take?

Depending on several circumstances, the franchise clearance process at McDonald's usually takes between six and twelve months. You may expect a comprehensive evaluation of your credentials, financial history, and business experience after you complete your application. Interviews and a rigorous review procedure are part of the process for those who cut. Once you're approved, you'll have twelve to eighteen weeks to finish a rigorous training program. The timetable might change depending on how quickly you can fulfill McDonald's standards and how many franchise options are available to you.

How Can I Become a Non-U.S. McDonald’s Franchisee?

Visit the McDonald's webpage to learn more about franchise opportunities in the country of your choice if you want to open a McDonald's franchise outside of the United States. Take a look at the local credentials, financial standards, and geographical options; every market has its unique demands. Send in your application while giving specifics about your company and its finances. Shortlisted candidates will be asked to participate in interviews and a market-specific assessment. A thorough training program is completed by those who are successful. For more information on the application procedure and regional criteria, you may contact the McDonald's office in the country you are targeting.

Why Are McDonald's Franchises In Demand?

Due to the brand's significant market presence, established business plan, and worldwide awareness, McDonald's franchises are in high demand. Franchisees may avoid the usual pitfalls of beginning a company by taking advantage of pre-existing operating procedures, receiving comprehensive training, and receiving continuous assistance. Customers keep coming back for more because of the creative advertising and varied menu options offered by the business. Also, McDonald's is successful in the long run because it prioritizes quality, convenience, and responding to regional preferences. Investing in a McDonald's franchise offers access to a stable income and the chance to expand with the fast food business giant.

Who Is the Leadership of McDonald’s?

Chris Kempczinski – President and CEO Skye Anderson – President, Global Business Services Joe Erlinger – President, McDonald’s USA Jill McDonald – President, International Operated Markets Jo Sempels – President, International Developmental Licensed Markets Jon Banner – Executive Vice President, Global Chief Impact Officer Ian Borden – Executive Vice President, Global Chief Financial Officer Heidi Capozzi – Executive Vice President, Global Chief People Officer Morgan Flatley – Executive Vice President, Global Chief Marketing Officer and New Business Ventures Marion Gross – Executive Vice President, Global Chief Supply Chain Officer Desiree Ralls-Morrison – Executive Vice President, Global Chief Legal Officer and Corporate Secretary Brian Rice – Executive Vice President, Global Chief Information Officer Manu Steijaert – Executive Vice President, Global Chief Customer Officer

What Helpful Articles Can I Read About McDonald's Franchise?

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