What is the Most Profitable Franchise Opportunity?

Multiple sources rank McDonald’s as the best and most profitable franchise to own. NerdWallet writer Sally Lauckner writes, “McDonald’s is one of the more expensive franchises around, but has perhaps the best brand recognition in the world.” Though a McDonald’s franchise may require a larger investment up-front, careful real estate selection paired with the brand’s remarkable sales reputation allows franchisees to make back their initial investment – and then some.

McDonald’s has strict requirements for franchisees, including net worth, liquid cash requirements and company learning expectations, but many franchisees recognize the boundless opportunities that meeting these standards can deliver. With a history of franchisees scaling their portfolio operations to multi-unit, it’s no secret why McDonald’s franchises represent such an attractive investment option.

Not only is McDonald’s a commonly recognized brand, but the company is often pointed to as “one of the most responsive companies in the QSR industry,” notes Fransmart. For example, they are consistently adapting to customer desires by delivering things such as menu additions and removal of food preservatives, product quality and regularity, and a more customized guest experience.

The beauty of franchising lies in the relationship between franchisee and franchisor. McDonald’s has a well-established brand and a clear commitment to customer satisfaction, and a franchisee can rest assured that the brand is committed to providing support and helping their investors succeed.

This commitment to franchisee success can be linked to key company statistics and values.

McDonald’s 2020 Annual Report states that, at the end of 2020, there were 39,198 McDonald’s restaurants, 36,521 of which were franchised locations.

“The Company is primarily a franchisor and believes franchising is paramount to delivering great-tasting food, locally relevant customer experiences and driving profitability,” the report states. “Franchising enables an individual to be their own employer and maintain control over all employment related matters, marketing and pricing decisions, while also benefiting from the strength of McDonald’s global brand, operating system and financial resources.”

The cost to open a McDonald’s franchise location is between $1.3 million and $2.3 million, and stores averaged $3 million in sales in 2020. Choosing a franchise brand to invest in can be an incredibly personal decision; many individuals spend decades saving up and planning for a monumental career shift. Though the ultimate investment decision lies in the hands of the prospective franchisee, McDonald’s is undoubtedly a brand to consider for strong corporate support, community involvement, and high profit margins.