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McDonald's Franchise: Cost, Fees & Earnings

Food & Beverage

13,706 locations (2025), +1.1% YoY(Item 20)

A McDonald's franchise requires an estimated total investment of $701,000 to $2,807,000, including a $500 initial franchise fee (2026 FDD, Item 7). Franchisees pay an ongoing royalty of 4-5% (Item 6). The 2026 FDD reports a median unit revenue of $3,887,000 for FY2025 (Item 19).

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Median Revenue (AUV)

$3,887,000

Source: 2026 FDD, Item 19

Initial Investment

$701,000 – $2,807,000

Source: 2026 FDD, Item 7

Franchise Fee

$500

Source: 2026 FDD, Item 5

Royalty

4-5%

Source: 2026 FDD, Item 6

McDonald's Franchise Key Facts

MetricValueSource
Initial Investment$701,000 – $2,807,000Source: 2026 FDD, Item 7
Initial Franchise Fee$500 – $45,000Source: 2026 FDD, Item 5
Royalty4-5%Source: 2026 FDD, Item 6
Median Revenue (AUV)$3,887,000Source: 2026 FDD, Item 19
Total Locations13,706 (2025)Source: Item 20

McDonald's Franchise Fees

  • Initial franchise fee(Item 5)

    $500 – $45,000

  • Ongoing royalty(Item 6)

    4-5%

  • National ad / brand fund(Item 6)

    4%

  • Technology fee(Item 6)

    $1,133

  • Buildout / construction(Item 7)

    $1,100,000 – $1,715,000

Additional Item 5–6 fees (transfer, renewal, area development, and any veteran discounts) are not yet parsed on Franchable — see the brand's FDD for the full fee schedule.

About McDonald's

McDonald's USA, LLC franchises and operates a system of restaurants. These restaurants prepare, assemble, package, and sell a limited menu of value-priced foods. The McDonald's System includes trademarks, manuals, operational, real estate, and marketing information. Most U.S. restaurants are franchised to independent franchisees, with a smaller percentage operated by McOpCo companies. Locations vary from freestanding buildings to food courts, including satellite locations in retail stores. Some restaurants are STOs (small town oil) or STRs (small town retail). Franchisees must comply with all applicable laws. Franchisees compete with other restaurants and food service businesses.

What McDonald's FDD Discloses

The largest disclosed cost line in McDonald's disclosed unit P&L was Other operating expenses, at about 46.9% of revenue (disclosed Item 19, FY2025).

In 2025, McDonald's franchised system recorded 221 franchised openings, 75 closures (Item 20).

Gross Sales by Performance TierSource: 2026 FDD Item 19

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AUV Trend — Multi-Year Median Revenue

Additional Item 19 Analysis

Deeper Item 19 Analysis (Charts 3–6)

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Openings & Closings, Transfer Rates, Franchise vs Corporate Mix

McDonald's vs Competitors

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McDonald's Franchise FAQ

How much does a McDonald's franchise cost?

Per Item 7 of the 2026 FDD Franchise Disclosure Document, the estimated initial investment ranges from $701,000 to $2,807,000.

What is the McDonald's franchise fee?

The FDD reports an initial franchise fee of $500 to $45,000.

What royalty does McDonald's charge?

The FDD reports an ongoing royalty of 4-5%.

How much revenue does a McDonald's franchise generate?

The 2026 FDD reports a median revenue per unit of $3,887,000 for fiscal year 2025. Individual results vary.

How much does a McDonald's franchise owner make?

McDonald's disclosed median unit revenue of $3,887,000 in FY2025 (Item 19). It does not disclose unit-level profit, so a reliable owner-income figure can't be drawn from its FDD. Individual results vary.

Can I finance a McDonald's franchise with an SBA loan?

Many franchise purchases are financed with SBA 7(a) loans covering a large share of the total project cost. You can check what you'd qualify for with Franchable's free SBA prequalification.

Data sourced from the brand's Franchise Disclosure Document. Franchable is not affiliated with or endorsed by McDonald's. This is not an offer to sell a franchise. Individual results vary.