1851

With over 40,800 locations,&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-mcdonalds-franchise-costs-fees-profit-and-data-2720737#stories">McDonald’s</a> is one of the strongest fast-food brands around the world and a popular choice for franchisees. But exactly how much does it cost to open a McDonald's franchise? Here’s what you need to know.&nbsp;<h3>The Investment</h3>The total investment to open a McDonald’s franchise in 2024 ranges from $1.5 million to $2.5 million. This includes a $45K franchise fee. McDonald’s also has a liquid cash requirement of at least $500K for a McDonald's franchise.&nbsp;McDonald’s offers&nbsp;<a href="https://www.franchisedirect.com/information/how-much-does-it-cost-to-open-a-mcdonalds?utm_source=1851franchise.com&amp%3Butm_medium=article&amp%3Butm_campaign=franchise-deep-dive-mcdonalds-franchise-costs-fees-profit-and-data-2720737&utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-much-does-it-cost-to-buy-a-mcdonalds-franchise-2724654#:~:text=McDonald's%20also%20offers%20two%20types,25%25%20of%20the%20total%20cost." target="_blank" rel="nofollow">two types of restaurant purchases</a> for a McDonald's franchise: new or existing. For new restaurants, the down payment is 40% of the total cost. For existing restaurants, the down payment is 25% of the total cost. And the down payment cannot come from borrowed funds. Additionally, if financing is used for the rest of the initial investment costs, the remaining balance for the restaurant purchase price must be paid off within the first seven years of operation.For new restaurants, the bulk of the initial investment costs cover signs, seating, equipment and decor, according to a disclosure report viewed by&nbsp;<a href="https://www.businessinsider.com/what-it-costs-to-open-a-mcdonalds-2016-8?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-much-does-it-cost-to-buy-a-mcdonalds-franchise-2724654" target="_blank" rel="nofollow">Business Insider</a>. The base rent is dependent on when the restaurant opened, as well as the acquisition and development costs. For most new McDonald's franchise locations, rent ranges from 10% of total gross sales to $15.75% for new restaurants that have opened since January 1, 2020.&nbsp;<h3>Royalty Fees</h3>In 2023, McDonald's informed its operators of plans to&nbsp;<a href="https://1851franchise.com/mcdonalds-to-hike-royalty-fees-for-new-franchisees-marking-first-increase-in-30-years-2723700#stories">increase its royalty fees</a> from 4% to 5% starting at the beginning of 2024, marking the first increase in nearly three decades.&nbsp;The increment primarily impacts new operators and those acquiring corporately owned units. However, current operators maintaining their McDonald's franchise stores or those who purchase a franchised restaurant from another franchisee are exempt from this new rule. The move aims to align the fee structure in the United States and Canada with that of other global markets where the franchise already applies a 5% royalty rate."While we created the industry we now lead, we must continue to redefine what success looks like and position ourselves for long-term success to ensure the value of our brand remains as strong as ever," Joe Erlinger, McDonald's USA president, said in a message to domestic franchisees.&nbsp;<h3>Additional Fees</h3>There are also several monthly and annual fees franchisees must pay, including:<ul><li>More than $11,000 in annual fees for support and maintenance of restaurant software and equipment, including payment processing systems and kiosks.</li><li>Yearly fees ranging from $73.80 for corporate email-account support to $2,956 for servicing digital software such as the chain's app.&nbsp;</li></ul><h3>The Payoff</h3>Though a McDonald's franchise comes with a hefty price tag, it has a significant payoff. The brand’s global presence and iconic legacy have continued to resonate with consumers. In fact,&nbsp;<a href="https://corporate.mcdonalds.com/corpmcd/our-stories/article/investor-update-2023.html?utm_source=1851franchise.com&amp%3Butm_medium=article&amp%3Butm_campaign=franchise-deep-dive-mcdonalds-franchise-costs-fees-profit-and-data-2720737&utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-much-does-it-cost-to-buy-a-mcdonalds-franchise-2724654#:~:text=Today%2C%20McDonald's%20has%20over%2040%2C000,in%20the%20history%20of%20McDonald's." target="_blank" rel="nofollow">the franchise plans to expand to 50K restaurants</a> around the world by the end of 2027.In the&nbsp;<a href="https://www.prnewswire.com/news-releases/mcdonalds-reports-third-quarter-2023-results-301970540.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-much-does-it-cost-to-buy-a-mcdonalds-franchise-2724654" target="_blank" rel="nofollow">third quarter of 2023</a>, global systemwide sales of the McDonald’s franchise increased 11%, with global comparable sales of nearly 9% and strong growth across each segment.&nbsp;While the costs may seem startling, the appeal of being associated with one of the world's most recognized brands can make the investment worthwhile for those well-prepared for the challenges and rewards of the fast-food industry.&nbsp;

Cost of Buying a McDonald's Franchise | 1851 Franchise

1851 Franchise

Thinking about investing in one of the world’s most famous fast-food franchises? Here’s a look into what it’s going to cost you to buy a McDonald's franchise.

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

how-much-does-it-cost-to-buy-a-mcdonalds-franchise

TruBlue Home Service Ally

Be a Community Hero: How TruBlue Franchisees Are Changing Lives Beyond Business

be-a-community-hero-how-trublue-franchisees-are-changing-lives-beyond-business

Caring Transitions

Caring Transitions Wraps Up Record-Breaking Q3 With National TV Launches, Platform Growth and Key Leadership Promotion

caring-transitions-wraps-up-record-breaking-q3-with-national-tv-launches-platform-growth-and-key-leadership-promotion

SweatHouz

SweatHouz SWTHZ Franchise - Hunter and Mallory Mitchem - Franchisee Feature - 1851 Franchise

From Aerospace to Wellness: Hunter Mitchem’s Journey to a SweatHouz Empire

sweathouz-franchise-hunter-mitchem-6g

Onigilly Japanese Kitchen

Onigilly - Low Operating Costs Drive High Returns for Franchisees - 1851 Franchise

Maximize Your ROI: How Onigilly’s Low Operating Costs Drive High Returns for Franchisees

onigilly-franchise-fast-casual-franchise-opportunity

Layne's Chicken Fingers

What Is the Layne’s Franchise Disclosure Document, and What Will I Find in It?

laynes-franchise-disclosure-document

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Bed Bath & Beyond - Franchise Expansion - Retail Strategy - 1851 Franchise

Bed Bath & Beyond Launches Franchise Model as Part of Comeback Strategy

bed-bath-beyond-franchise-expansion-retail-strategy

Senior Entrepreneurship - Franchising - 1851 Franchise

Senior Entrepreneurship Is Rising — And Franchising Is a Key Outlet

senior-entrepreneurship-franchising-silver-startups

U.S. Government Shutdown - Impact on Franchises - 1851 Franchise

Government Shutdown Stalls SBA Loans: How the Shutdown Could Impact Franchises

government-shutdown-impacts-sba-loans-tourism-franchises

Subway Franchisees Resist Expensive Remodel Directives

subway-franchisees-resist-expensive-remodel-directives

The American Franchise Act: What It Means for Franchisors and Franchisees - 1851 Franchise

The American Franchise Act: What It Means for Franchisors and Franchisees

american-franchise-act-joint-employer-standard

image of franchise deep dive from 1851 franchise on doody calls franchise authority brands

DoodyCalls Franchise Costs, Fees, Profit and Data for 2025

doodycalls-franchise-deep-dive

image of mellow mushroom deep dive into financials article from 1851 franchise

Mellow Mushroom Franchise Costs, Fees, Profit and Data for 2025

mellow-mushroom-franchise-deep-dive

How goGLOW Turned Clean Beauty Into a Scalable Franchise and Why It’s Accelerating Now

goglow-clean-beauty-tanning-franchise

How Capriotti’s Sandwich Shop Has Expanded Into One of the Restaurant Industry’s Most Exciting Franchise Opportunities

meet-the-franchisor-capriottis-david-bloom

Top Education Franchises To Consider for 2025 - 1851 Franchise

Top Education Franchises To Consider Investing In for 2025

top-education-franchises-investment-opportunities

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Top Early Childhood Education and Child Care Franchises for 2025 - 1851 Franchise

Top Early Childhood Education and Child Care Franchises for 2025

early-childhood-education-child-care-franchises

1851 Franchisee Spotlight graphic with photo of Barb Volk and KidStrong logo

Why This Orangetheory Fitness Franchise Owner Is Developing KidStrong Franchises

kidstrong-franchise-owner-barb-volk-2025

NJCAR v. Ford - New Jersey Supreme Court Limits Standing Under Franchise Practices Act

New Jersey Supreme Court Limits Standing Under Franchise Practices Act

new-jersey-franchise-practices-act-njcar-v-ford

Top Arts and Creative Learning Franchises for 2025 - 1851 Franchise

Top Arts and Creative Learning Franchises for 2025

top-arts-creative-learning-franchises

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

MORE STORIES LIKE THIS