1851

A <a href="https://www.mcdonalds.com/us/en-us/about-us/franchising/franchising-faq.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-profitable-is-owning-a-mcdonalds-franchise-2715302" target="_blank" rel="nofollow">McDonald’s</a> franchise costs between $1.3 million and $2.3 million to open, and in 2018, stores averaged <a href="https://www.qsrmagazine.com/content/qsr-50-0?dir=desc&amp%3Bsort=2017_us_average_sales_per_unit_thousands_index&utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-profitable-is-owning-a-mcdonalds-franchise-2715302" target="_blank" rel="nofollow">$2.7 million in sales</a>.&nbsp;But before you go subtracting the initial costs from the yearly sales, consider that McDonald’s franchisees have to pay rent to the franchisor, pay their workers, pay food costs, pay for technology and marketing fees, and pay a 4% <a href="https://1851franchise.com/nick-powills-royalties-are-greater-than-fees-2709235">royalty</a> on gross sales.&nbsp;&nbsp;<a href="https://1851franchise.com/how-much-does-it-cost-to-buy-a-mcdonalds-franchise-2724654">McDonald’s franchises</a> typically turn a profit, something the brand’s sprawling 38,000 global locations attest to, but the degree of profitability for a given McDonald’s hinges on area-specific factors like demographics, location and operational efficiency.&nbsp;Since many McDonald’s locations exist within other businesses, like a McDonald’s inside a Disney World, for example, profitability remains heavily dependent on location. In 2020 McDonald’s locations in transportation hubs or theme parks probably realized slim due to the pandemic.&nbsp;Systemwide, McDonald’s <a href="https://www.macrotrends.net/stocks/charts/MCD/mcdonalds/gross-profit?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-profitable-is-owning-a-mcdonalds-franchise-2715302" target="_blank" rel="nofollow">reported declining profits in 2020</a>, although 2019 and 2018 saw positive growth in profits.&nbsp;Ultimately, some McDonald’s franchises are profitable and others are not, but on average the golden arches represent one of the world’s most valuable brands, one which has historically enjoyed profits for the corporate leaders and franchisees alike. However, some franchises within the system <a href="https://1851franchise.com/mcdonalds-us-operators-vote-to-snub-corporate-over-millions-in-fees-2714524">allege discrimination</a> and <a href="https://www.wsj.com/articles/mcdonalds-franchisees-consider-push-on-profit-cash-flow-1539118360?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-profitable-is-owning-a-mcdonalds-franchise-2715302" target="_blank" rel="nofollow">slimmer-than advertised profits</a>.

How Profitable Can Owning a McDonald's Franchise Be?

1851 Franchise

McDonald’s franchises can be profitable, but profitability varies by location, with costs like rent, wages and fees impacting margins, despite the brand's strong global presence.

how-profitable-is-owning-a-mcdonalds-franchise

New U Women's Clinic & Aesthetics

image of New U Women’s Clinic & Aesthetics employees and franchise

How New U Is Redefining Women’s Health, Offering a Scalable Franchise Opportunity as the Next Big Category Creator in the $21 Billion Med Spa Industry

womens-health-wellness-franchise-new-u

image of New U Women’s Clinic & Aesthetics Founder and CEO Dr. Rachel Fidino

The Void in Women’s Health, Solved By a Two Time Cancer Survivor: How New U Built Care that Didn’t Exist and is Eying National Franchise Expansion

new-u-womens-clinic-consumer-positioning

SweatHouz

SweatHouz Expansion - Tribeca Opening and 12 NYC Franchise Units - 1851 Franchise

SweatHouz Franchise Expands Into New York City With 12-Unit Development Agreement Across Manhattan and Brooklyn

sweathouz-new-york-tribeca-expansion

DoodyCalls

How This Family Built a Fast-Growing DoodyCalls Business in Greensboro, North Carolina

families-in-franchising-robert-thomas-doodycalls-greensboro

Sparkle Squad Window Cleaning Services

Sparkle Squad Franchise - Ryan Fraser - Franchisee Feature - 1851 Franchise

Commercial Real Estate Veteran Leverages Commercial Work To Grow Sparkle Squad Franchise

sparkle-squad-franchise-new-jersey-ryan-fraser

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

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

Hardee's Franchise - ARC Burger Lawsuit - 1851 Franchise

Hardee’s Lawsuit Targets Franchisee as 77 Restaurants Prepare to Shut Down

hardees-franchise-closures-arc-burger-lawsuit

Domino's Franchise - North Pole - Dec 2025 - 1851 Franchise

Domino’s Pizza Brings Delivery Cheer to North Pole, Alaska

dominos-pizza-franchise-north-pole-alaska

California Pizza Kitchen’s Sale Is the Latest in the Era of PE-Backed Turnarounds in Franchising

california-pizza-kitchens-sale-is-the-latest-in-the-era-of-pe-backed-turnarounds-in-franchising

Buying a fitness franchise, people exercising

Boutique vs. Big Box Gym Franchises: Which Offers Best ROI in the $7 Billion Fitness Market?

buy-fitness-franchise-boutique-big-box-comparison

Pieology Pizza Enters Chapter 11 Following Costly Bid To Save Struggling Stores

pieology-pizza-files-chapter-11-bankruptcy

AI-related job cuts, October U.S. job cuts, American job cut record

AI-Fueled Layoffs Reshape the U.S. Job Market — And Highlight Franchising’s Resilience

ai-job-cuts-franchising-path-forward

Paris Baguette Welcomes Zac Sulma as New Chief Operating Officer

new-coo-zac-sulma

Senior Entrepreneurship - Franchising - 1851 Franchise

Senior Entrepreneurship Is Rising — And Franchising Is a Key Outlet

senior-entrepreneurship-franchising-silver-startups

As Starbucks and Dunkin’ Navigate a Changing Market, New Coffee Players Keep Gaining Ground

starbucks-dunkin-franchise-coffee-market-trends

Do You Qualify? A Look at the Chick-fil-A Franchise Requirements

do-you-qualify-a-look-at-the-chick-fil-a-franchise-requirements

The Top 15 Pet Supplies and Retail Franchises for 2025

the-top-15-pet-supplies-and-retail-franchises

Scenthound Franchise Costs, Fees, Profit and Data for 2025

scenthound-franchise-costs-fees-profit-and-data

Ellianos Coffee Franchise Costs, Fees, Profit and Data for 2025

ellianos-coffee-franchise-costs-fees-profit-and-data

Sparkle Dog Care Franchise Costs, Fees, Profit and Data for 2025

How Profitable Can Owning a McDonald's Franchise Be?

MORE STORIES LIKE THIS