1851

Opening a <a href="https://www.mcdonalds.com/us/en-us/about-us/franchising.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=is-mcdonalds-a-low-risk-franchise-investment-2715483" target="_blank" rel="nofollow">McDonald’s franchise</a> represents a relatively low-risk investment compared to the rest of the franchising and restaurant industry world, in part because it’s a strong brand name that entrepreneurs can usually sell if they get into trouble.&nbsp;But owning a McDonald’s franchise means owning a business, and that always includes risk.McDonald’s has credibly limited the risks of owning one of its stores by having successfully franchised in dozens of countries around the world with thousands of different franchisees. These franchisees give input, insight and even some promotional ideas to the corporate leaders, who use those ideas to make the investment a safer bet. Compared to a new franchise or independent restaurant, McDonald’s has significantly de-risked its proposition.&nbsp;Also, many restaurant management companies already operate several McDonald’s locations, so they could easily buy a McDonald’s restaurant in a resale from a distressed franchisee.McDonald’s corporate operation has insulated itself from fluctuations in the restaurant industry by essentially <a href="https://1851franchise.com/why-is-mcdonalds-considered-a-real-estate-company-2715077">becoming a real estate company</a>. McDonald’s franchisees pay the corporate office a royalty on all sales, but a much greater share of McDonald’s corporate revenue comes from rent payments, as the brand owns 100% of its system’s real estate. For this reason, McDonald’s corporate operations can be expected to endure even during recessions.&nbsp;For entrepreneurs, the key risk in running a McDonald’s is failing to do the work. Running a McDonald’s takes patience, dedication and tolerance. Additionally, with more than 35,000 franchised locations, McDonald’s has seen it all. Franchisees who try to fudge the numbers or take shortcuts on regulations can expect to see Ronald McDonald’s unhappy face.

Is McDonald's a Low-Risk Franchise Investment?

1851 Franchise

McDonald’s franchises are relatively low-risk compared to other franchise or food service investments, but not everything is golden under the Golden Arches.

is-mcdonalds-a-low-risk-franchise-investment

Layne's Chicken Fingers

image of laynes chicken finger restaurant with 4 hands holding cups in the air to celebrate 

 Layne’s Chicken Fingers Crosses Mid-Year Mark With 11 New Restaurants Opened, Including the First Time the Brand has Seen Two Openings on the Same Day on July 14

laynes-chicken-franchise-growth-2025

HomeTeam Inspection Service

image of an employee from home team checking an outlet with an ipad

HomeTeam Inspection Service Franchise Owners Diversify Income With Multi-Service Model

hometeam-inspection-service-revenue-streams

Right at Home

image of jennifer selden right at home franchisee for a webinar with nick powills

Right at Home Franchise Owner Jennifer Selden To Share Franchise Journey, Sparked by Personal Care Experiences

jennifer-selden-right-at-home-franchise-journey-webinar

Paris Baguette Canada

image of a paris baguette bakery cafe latte with delicious food, croissants, and pastries

What Paris Baguette Franchisees Have To Say About Their Experiences

paris-baguette-franchise-canada-eric-chang

image of right at home franchisee gregory brewer for a webinar with nick powills

Gregory Brewer To Share 20-Year Franchise Journey With Right at Home in Upcoming Webinar

gregory-brewer-right-at-home-franchise-winston-salem-webinar

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

AI Is Reshaping Franchising: $100 Billion Valuations and Hyper-Localized Advertising

ai-is-reshaping-franchising-100-billion-valuations-and-hyper-localized-advertising

Mega Franchisee Sizzling Platter Acquired by Bain Capital

mega-franchisee-sizzling-platter-acquired-by-bain-capital

Wendy's CEO Kirk Tanner Steps Down - Breaking News - 1851 Franchise

Wendy’s CEO Kirk Tanner Steps Down Amid Challenges, Leaving Franchisees Facing Uncertainty

wendys-ceo-transition-kirk-tanner-franchisee-uncertainty

"Come in, We're OPEN" sign against abstract background

Small Business Optimism Dips, Raising Concerns for Franchise Owners

small-business-optimism-dips-raising-concerns-for-franchise-owners

Photo of Roof Scientist truck and trailer

Roof Scientist Expands Into Northern Indianapolis as Entrepreneur Dale Speckman Launches New Business in Fishers

roof-scientist-expands-into-northern-indianapolis

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Blending Tech, Hospitality and Health Care: How Three Women From Different Worlds Came Together to Build a Paris Baguette Franchise

paris-baguette-franchise-flower-mound-texas

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

Sola Salons Franchisee Grows Salon Freedom Into a Multi-State Powerhouse 

sola-salons-franchisee-grows-salon-freedom-into-a-multi-state-powerhouse

Is McDonald's a Low-Risk Franchise Investment?

MORE STORIES LIKE THIS