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Consumers think of <a href="https://www.mcdonalds.com/us/en-us/about-us/franchising/franchising-faq.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-is-mcdonalds-considered-a-real-estate-company-2715077" target="_blank" rel="nofollow">McDonald’s</a> as a burger restaurant, but in the business world, McDonald’s is considered a real estate company.&nbsp;While the brand has sold more than one billion hamburgers to customers around the world, 85% of its stores are owned by franchisees. Franchisees pay to use McDonald’s brand name, its proprietary processes and trademarked menu items, but unlike other franchises, McDonald’s owns the land the stores are built on.&nbsp;Between the burgers and the land, McDonald’s makes a lot more of its money on the land.&nbsp;McDonald’s owns thousands of iconic pieces of real estate around the globe. From New York City’s Times Square to Moscow’s Red Square, McDonald’s has ventured around the world, buying up prime real estate. Franchisees pay McDonald’s a cut of their food sales, but a much larger portion of McDonald’s revenue comes from the rent it’s paid on its real estate. After all, rent in Times Square isn’t cheap, but a Big Mac is.&nbsp;McDonald’s still takes a royalty on its franchisee’s sales but enjoys a much fatter revenue stream from the leases on nearly 33,000 franchisee-owned restaurants.“The Founder,” a 2016 film about McDonald’s history <a href="https://www.youtube.com/watch?v=uxCL2RqCuiY&utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-is-mcdonalds-considered-a-real-estate-company-2715077" target="_blank" rel="nofollow">explains the dynamic succinctly</a>: “You don’t build an empire off a 1.4% cut of a 15 cent hamburger, you build it by owning the land on which that burger is cooked.”<figure class="media"><oembed url="https://www.youtube.com/watch?v=uxCL2RqCuiY"></oembed></figure>

Why is McDonald's Considered a Real Estate Company?

1851 Franchise

The golden arches are synonymous with burgers and fries, but business people find something meatier to sink their teeth into when looking at McDonald’s ledger: the real estate.

why-is-mcdonalds-considered-a-real-estate-company

Griswold

Griswold Franchise - Entrepreneur 500 - FBR Award - 1851 Franchise

Griswold Wraps up Q1 with National Recognition from Entrepreneur and Franchise Business Review

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KidStrong Franchising, LLC

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Inside KidStrong’s Playbook: The Marketing Engine Powering Franchise Success

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Mathnasium

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5 Reasons Prospective Franchisees Should Buy Mathnasium Learning Centers in 2026

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Jollibee

Chicago Biz Journal: Jollibee Targets Chicago Suburbs for Franchise Expansion as U.S. Growth Accelerates

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Children's Lighthouse

Children’s Lighthouse President Michael Brown on Franchise Growth, Curriculum Excellence, and Family-Driven Leadership

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KKR to Acquire Nothing Bundt Cakes in $2 Billion Deal -  1851 Franchise

KKR to Acquire Nothing Bundt Cakes in $2 Billion Deal

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FTC Settlement Puts New Focus on Franchise Disclosure Standards - 1851 Franchise

FTC Settlement Puts New Focus on Franchise Disclosure Standards

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Applebee’s Franchisee Files for Bankruptcy as Dine Brands Moves to Acquire 53 Units - 1851 Franchise

Applebee’s Franchisee Files for Bankruptcy as Dine Brands Moves to Acquire 53 Units

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Why Skilled Trades Are Emerging as the Economy’s Most AI-Resilient Careers

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The Penny Shortage Is Creating a New Risk for QSR Franchise Systems - 1851 Franchise

The Penny Shortage Is Creating a New Risk for QSR Franchise Systems

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A class-action lawsuit filed late last month in U.S. District Court in Chicago&nbsp;<a href="https://www.cbsnews.com/chicago/news/lawsuit-accuses-mcdonalds-deception-mcrib-has-no-rib-meat/">accuses McDonald's of deceptive advertising over its iconic McRib sandwich</a>, arguing that the product’s name and marketing mislead consumers into believing it contains actual pork rib meat. The plaintiffs, representing several states, claim the fast-food chain has intentionally cultivated hype and scarcity around the McRib through limited-time releases and advertising campaigns, most recently bringing the sandwich back in November. "The name 'McRib' is a deliberate sleight of hand. By including the word ‘Rib’ in the name of the sandwich, McDonald's knowingly markets the sandwich in a way that deceives reasonable consumers, who reasonably (but mistakenly) believe that a product named the 'McRib' will include at least some meaningful quantity of actual pork rib meat, which commands a premium price on the market," the lawsuit said. "McDonald's does this despite knowing that the sandwich in fact does not contain any meaningful quantity of actual pork rib meat — indeed, none at all."Instead, the complaint alleges that the sandwich contains no rib meat at all and is made from restructured pork derived from lower-grade cuts.&nbsp;"Put simply: consumers have been materially misled en masse as a result of McDonald's deceptive labeling and marketing into purchasing sandwiches that they would not otherwise have purchased, or would only have paid less for, had they known the truth," the lawsuit said.McDonald’s strongly disputed the claims. "This lawsuit distorts the facts, and many of the claims are inaccurate,” McDonald’s said in a statement. “Food quality and safety are at the heart of everything we do — that's why we're committed to using real, quality ingredients across our entire menu. Our fan-favorite McRib sandwich is made with 100% pork sourced from farmers and suppliers across the U.S. We've always been transparent about our ingredients so guests can make the right choice for them."<a href="https://1851franchise.com/the-mcrib-has-returned-is-mcdonalds-bouncing-back-2714359">The McRib</a>, first introduced in 1981, has since become a cult favorite, cycling on and off menus over the decades and achieving nationwide availability in 2020.Read the full CBS News article&nbsp;<a href="https://www.cbsnews.com/chicago/news/lawsuit-accuses-mcdonalds-deception-mcrib-has-no-rib-meat/">here</a>.

The class-action suit claims the cult-favorite sandwich’s name, shape and pricing deceive customers about what they’re really buying.

McDonald’s Faces Lawsuit Alleging McRib Contains No Actual Rib Meat

mcdonalds-faces-lawsuit-alleging-mcrib-contains-no-actual-rib-meat

According to a&nbsp;<a href="https://www.businesswire.com/news/home/20260312305776/en/RF-Expands-Residential-and-Commercial-Services-Portfolio-with-Investment-in-Precision-Garage-Door-Service-Franchisee">recent release</a>,&nbsp;<a href="https://rf-partners.com/">RF Investment Partners</a>, a group focused on flexible capital solutions and value-add support to lower-middle-market businesses, has teamed up with&nbsp;<a href="https://www.burlingtoncp.us/">Burlington Capital Partners</a>, a group focused on family, founder and operator-owned lower-middle-market businesses, to acquire a prominent multi-territory&nbsp;<a href="https://franchise.neighborly.com/precision-door">Precision Garage Door Service</a> franchise.The investment marks the seventh platform for RF within the service space. Precision Garage Door Service, which is part of the larger&nbsp;<a href="https://www.neighborly.com/">Neighborly</a> ecosystem, specializes in the installation, maintenance and repair of garage doors.&nbsp;“We are proud to partner with management and the Burlington team to support continued growth by investing in people and operational excellence,”&nbsp;<a href="https://www.linkedin.com/in/peter-fidler-6787143">Peter Fidler</a>, managing partner and co-founder of RF Investment Partners, said in the release. “The sector continues to present compelling opportunities given the essential nature of garage door repair, and we look forward to building on Precision’s strong foundation to drive long-term value.”This deal is part of the broader trend toward institutionalized multi-unit and multi-territory operators. Previously, franchising was largely viewed as the place for “mom-and-pop” businesses. And while franchises remain small, local businesses, the aggressive entry of private equity firms focused on operators (franchisees) rather than the brand (franchisor) is bringing new energy to small business ownership.Read the full release&nbsp;<a href="https://www.businesswire.com/news/home/20260312305776/en/RF-Expands-Residential-and-Commercial-Services-Portfolio-with-Investment-in-Precision-Garage-Door-Service-Franchisee">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Design with Precision Garage Door Service team members

The strategic investment marks the seventh residential services platform for RF and reflects a growing institutional desire for high-potential, operator-led franchises.

RF Investment Partners and Burlington Capital Join Forces to Acquire Top Precision Garage Door Franchise

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<a href="https://www.entrepreneur.com/franchise500">Entrepreneur’s 2026 Franchise 500</a> has arrived, and it demonstrates a few key shifts within the industry. The ranking, widely recognized as the gold standard, weighs key data points — including costs and fees, size and growth, support and brand strength — to determine the final list. This year, the results point to an industry that’s both leaning into legacy brands and embracing niche, innovative ones that address the shifting business and investing landscape.<h2>The Top 10 Brands of 2026</h2>Familiar powerhouses dominate the top 10, but notably, Jersey Mike’s moved into the No. 1 spot, dethroning Taco Bell.<ol><li><a href="https://1851franchise.com/franchise-deep-dive-jersey-mikes-franchise-costs-fees-profit-and-data-2720908">Jersey Mike’s</a></li><li><a href="https://1851franchise.com/taco-bell-franchise-deep-dive-2720788">Taco Bell</a></li><li><a href="https://1851franchise.com/franchise-deep-dive-dunkin-franchise-costs-fees-profit-and-data-2720835">Dunkin’</a></li><li><a href="https://1851franchise.com/franchise-deep-dive-ace-hardware-franchise-costs-fees-profit-and-data-2720851">Ace Hardware</a></li><li><a href="https://1851franchise.com/kumon-franchise-costs-fees-profit-and-data-for-2025-2729462">Kumon</a></li><li><a href="https://1851franchise.com/franchise-deep-dive-wingstop-franchise-costs-fees-profit-and-data-2720864">Wingstop</a></li><li><a href="https://1851franchise.com/franchise-deep-dive-the-ups-store-franchise-costs-fees-profit-and-data-2727441">The UPS Store</a></li><li><a href="https://1851franchise.com/franchise-deep-dive-hampton-by-hiltons-franchise-costs-fees-profit-and-data-2722575">Hampton by Hilton</a></li><li><a href="https://1851franchise.com/culvers-franchise-costs-fees-roi-2025-2720843">Culver’s</a></li><li><a href="https://1851franchise.com/franchise-deep-dive-mcdonalds-franchise-costs-fees-profit-and-data-for-2025-2720737#stories">McDonald’s</a></li></ol><h2>Other Shifts and Market Trends</h2>While the top 10 features familiar quick-service restaurants, the ranking also highlights the popularity of other community-focused and need-based models.Beyond the household names, the 2026 ranking highlights the strength of home services franchises; the “care economy,” with both childcare and senior care models; and other specialized industries that were previously fragmented by many independent organizations.For the broader economy, the Franchise 500 proves that franchising remains one of the most stable vehicles for wealth creation. Top brands this year suggest investors are no longer looking for just the biggest name or newest fad. Rather, they’re gravitating toward brands with strong infrastructure and recession-resistant, utility-focused models.View the full ranking&nbsp;<a href="https://www.entrepreneur.com/franchise500">here</a>.

2026 Franchise 500 design with Jersey Mike's, Dunkin', Taco Bell, Ace Hardware, and Kumon

The latest rankings reveal a new leader, a surge in the “care economy,” and an emphasis on stability, infrastructure and recession resistance. 

The 2026 Franchise 500: New Rankings and Market Shifts

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The&nbsp;<a href="https://www.franchise.org/">International Franchise Association</a> has released its annual&nbsp;<a href="https://www.franchise.org/franchising-economic-outlook/">Franchising Economic Outlook</a> report for 2026, painting the picture for a positive year of growth after notable economic turbulence in 2025.“The resilience of franchising has enabled our model to adapt, endure and thrive in the face of challenging macroeconomic headwinds,”&nbsp;<a href="https://www.linkedin.com/in/matthewhaller">Matt Haller</a>, IFA president and CEO, said in a release. "After a year of recalibration, franchising is better positioned to navigate an improving economic environment than independent businesses due to tax certainty, lower interest rates and investments in AI that will propel brand growth, franchisee unit-level economics and wage growth for the franchise workforce."The report features key industry projections for the year, including:<ul><li>The addition of over 12,000 new franchised businesses</li><li>The addition of over 150,000 jobs — meaning the industry will represent nearly 8.9 million jobs</li><li>An increase in total franchise GDP from $549.9 to $558.4 billion</li><li>An increase in multi-unit ownership as current single-unit franchisees pursue scale</li></ul>In addition to the strength of the industry as a whole, the organization highlighted segment-specific trends.&nbsp;<ul><li>This year, child services and commercial and residential services are recognized as top performers, expected to achieve a 3.2% year-over-year growth rate.</li><li>A focus on experiential dining, rather than value alone, may drive full-service restaurants to outpace quick-service brands in output growth.</li><li>Preventive health care has risen to be the third-largest franchised industry, and it represents strong opportunities as consumer awareness surrounding preventive health care persists.</li></ul>In terms of growth markets, Texas continues to lead the country as the fastest-growing state for franchising, followed by Florida, Georgia, Arizona and North Carolina. Michigan, Ohio and Utah have joined the top 10 this year thanks to their relative affordability and the potential they offer for market leadership and long-term growth.The outlook for 2026 is upbeat, and the drivers behind it look different than they did a few years ago. More brands are putting AI and automation to work in day-to-day operations, which helps franchisees move faster on basics like scheduling and inventory and stay tighter on margins.The growth in multi-unit ownership points to a shift in how people are approaching franchising. More operators are treating it like a scalable investment, focused on building an asset, not just buying themselves a job.As the year ramps up, IFA’s data suggests growth in 2026 will be driven by those leveraging the scale of the franchise model, embracing a tech-forward approach to business ownership, and staying agile in an evolving business landscape.Find the full 2026 Franchising Economic Outlook report&nbsp;<a href="https://www.franchise.org/franchising-economic-outlook/">here</a>.

Highlighting child services and commercial and residential services as top performers, the organization predicts the industry will add over 150,000 jobs and increase its GDP by billions this year.

IFA Releases 2026 Franchising Economic Outlook Report, Predicting Over 12,000 New Franchised Businesses This Year

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How much can franchisees make? It’s a question many prospective owners ask before investing in a franchise. While earnings tend to be driven by variables such as industry, location and general management skills, a proper understanding of the key factors driving profitability can help franchise owners develop expectations that are realistic.&nbsp;Multi-unit franchisee&nbsp;<a href="https://www.linkedin.com/in/mangesh-patel-9368569/">Mangesh Patel</a>, who’s readying the launch of six&nbsp;<a href="https://www.beefobradysfranchise.com/">Beef ‘O’ Brady’s</a> restaurant locations in the Macon, Georgia area, shares insights from his franchising experience.<h2>Understanding Franchise Income</h2>Keeping operational costs in check can have a major impact on overall earnings. Taking a proactive approach to expenses such as food and labor, as well as payroll and scheduling, can help align actual franchise income with general expectations for the business.“I just had a meeting with a couple of people, and they said, ‘You talked about a 25% profit margin, but I’m only doing 12%.’ So, I looked at the figures they sent me,” Patel said. “Their&nbsp;<a href="https://1851franchise.com/calculate-restaurant-franchise-profit-2730476">restaurant</a> food cost was running at 37%, which should be around 30%. The national average is about 32%. If I do things correctly, my average food cost needs to be at or below 30%. And payroll should run around 18%. But many people run 25 to 28%.”So,&nbsp;<a href="https://1851franchise.com/unraveling-franchise-earnings-how-much-can-you-really-make-2723935">how much can franchisees make</a>? Here are five areas to consider.<h2>Practical Tips for Prospective Franchisees</h2><ol><li>Control Costs From Day One:&nbsp;It’s important to monitor payroll, food and supply costs closely. Overstaffing and inefficiencies can quickly reduce profits.</li><li>Plan For The Opening Surge:&nbsp;Traffic within the first few months of opening is likely to be higher. It’s important to adjust staffing and inventory accordingly, and pay close attention to how those levels change as time goes on.</li><li>Invest In Training:&nbsp;Properly trained workers can help reduce waste and improve overall service, which has a direct effect on net income.</li><li>Understand Your Market:&nbsp;Each market is unique and revenue potential will vary depending upon location, demographics and competition.</li><li>Track Metrics Regularly:&nbsp;Food cost percentages, labor ratios and weekly sales data act as key indicators operations may need to be adjusted.</li></ol><h2>What Profitability Really Comes Down To</h2>Patel notes that if franchise owners manage labor and costs properly, it’s not impossible to achieve strong cash flow even in the first year, bucking some franchising trends.So,&nbsp;<a href="https://1851franchise.com/how-much-can-you-make-as-a-franchise-owner-2724761">how much can franchisees make</a>? While results tend to vary, careful planning, disciplined operations and a proactive approach to assessing initial costs are essential. But by grasping and guiding the elements that drive franchise profitability, franchise owners can maximize overall business earnings, scaling a business that’s sustainable financially over the long term.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

How much can franchisees make? This guide explains what drives franchise earnings and how to manage costs, with expert tips from multi-unit owner Mangesh Patel on maximizing your franchise income.

How Much Can Franchisees Make? A Guide for Prospective Franchise Owners

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Franchise Opportunity Deep Dive: A fast-casual restaurant brand serving made-from-scratch sandwiches, salads, soups and pizzas rooted in Southern hospitality.


Newk’s Eatery Franchise Costs, Fees, Profit and Data for 2026

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Beef 'O' Brady's Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Beef ‘O’ Brady’s is a family sports pub concept built around community, casual dining and lifelong local loyalty.

beef-o-bradys-franchise-costs-fees-profit-and-data

BrightStar Care Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: BrightStar Care is a home health care franchise that provides both medical and non-medical services.

franchise-deep-dive-brightstar-cares-franchise-costs-fees-profit-and-data

Visiting Angels Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Visiting Angels is a senior home care franchise focused on in-home support for seniors and individuals with disabilities.

visiting-angels-franchise-costs-fees-profit

Understanding&nbsp;<a href="https://1851franchise.com/how-much-money-do-i-need-to-buy-a-franchise-a-guide-2730910">the total investment</a> required for a franchise is one of the first questions prospective franchise owners ask. While the answer can vary widely depending on brand, industry and market, knowing what goes into it can help entrepreneurs evaluate opportunities realistically (and avoid costly surprises).So, what&nbsp;is the total investment required for a franchise? The total investment reflects everything needed to open and operate the business and adequately navigate its early stages, from buildout to working capital.<h2>Why The Total Investment Matters</h2>Transparency is important. Investment details should be front and center early in the discovery process. It should also be a significant element of the franchise development website for any business opportunity.“The most visited page is the initial investment/start-up cost,” said&nbsp;<a href="https://thejointfranchise.com/">The Joint Chiropractic</a> Senior Vice President, Development&nbsp;<a href="https://www.linkedin.com/in/cmsherwood/">Craig Sherwood</a>. “This is not a surprise. This question is almost always the first a candidate will ask during the initial phone call. It’s critical for a brand to be transparent with not just the initial investment information but the royalties and fees associated with becoming a franchisee.”Developing an accurate understanding of the full financial picture required allows potential zees to assess affordability, tolerance for risk and long-term expectations (before moving ahead or signing a franchise agreement).<h2>What Goes Into The Total Investment?</h2>While every franchise system is different, the total investment required typically includes several core components. “The investment range includes three months of operating costs, the franchise fee and related expenses,” said&nbsp;<a href="https://www.simplycabinetryfranchising.com/">Simply Cabinetry</a> owner and CEO&nbsp;<a href="https://www.linkedin.com/in/dianasimmons-simplycabinetry/">Diana Simmons</a>. So, what is the total investment required for a franchise?&nbsp;Here are five components:<ul><li>Franchise Fee – The upfront fee paid to join the franchisor system and access the brand, training and support available. &nbsp;</li><li>Buildout and Equipment – Costs tied to general construction, leasehold improvements, signage, fixtures and equipment. &nbsp;</li><li>Inventory and Opening Supplies – The initial product, materials or inventory required to open. &nbsp;</li><li>Working Capital – The funds needed to cover payroll, marketing and operating expenses during the first few months of operation. &nbsp;</li><li>Ongoing Fees – Royalties, marketing contributions, technology expenditures and other recurring fees outlined in the franchise disclosure document (FDD).</li></ul><h2>Making An Informed Investment Decision</h2>So, what is the total investment required for a franchise?&nbsp;<a href="https://1851franchise.com/how-much-capital-is-needed-to-buy-a-franchise-2716989">The amount required</a> to launch a franchise opportunity can range from tens of thousands to several hundred thousand dollars, or more, depending on the industry, concept and recognition of the brand. That’s why a thorough review of FDD Item 7 (estimated initial investment) and consultation of experienced franchise counsel is crucial.A clear understanding of the total investment required to start a franchise can help candidates navigate the process more effectively. By asking questions early and thoroughly evaluating costs, franchisees can determine whether a brand aligns with their financial goals, laying the foundation for long-term success.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

What is the total investment required for a franchise?

What is the total investment required for a franchise? In this guide with expert tips, learn the costs of starting a franchise, including the fees, buildout, capital and ongoing expenses required.

Why is McDonald's Considered a Real Estate Company?

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