McDonald’s Franchise FDD, Profits & Costs
McDonald’s, founded in 1940 by Richard and Maurice McDonald in San Bernardino, California, is a globally recognized fast-food franchise. In 1955, Ray Kroc opened the first McDonald’s franchise in Des Plaines, Illinois, and later acquired the company. Today, McDonald’s headquarters is in Chicago, Illinois.
The franchise expanded rapidly under Kroc, focusing on a consistent and efficient service model. Since franchising began in 1955, McDonald’s has grown to over 38,000 locations in more than 100 countries. Around 93% of McDonald’s restaurants are owned by independent local business owners.
McDonald’s stands out with its iconic brand, consistent product quality, and innovative marketing. The company adapts to consumer trends by introducing new menu items and focusing on food quality and sustainability.
Initial Investment
How much does it cost to start a McDonald’s franchise? It costs on average between $525,000 – $2,728,000 to start a McDonald’s franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
McDonald’s offers 3 types of franchises:
| Franchise Type | Initial Investment Range |
|---|---|
| Traditional McDonald’s restaurant | $1,471,000 to $2,728,000 |
| STO and STR Locations | $1,014,500 to $1,793,500 |
| Satellites | $525,000 to $1,193,500 |
We are summarizing below the main costs associated with opening a traditional McDonald’s restaurant franchise. For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $0 to $45,000 |
| Real Estate and Building – 3 Months’ Rent | $0 to $313,000 |
| Percentage Rent | 0.00% to 29.00% |
| Signs, Seating, Equipment, and Decor | $375,000 to $1,785,000 |
| Opening Inventory | $14,000 to $45,000 |
| Miscellaneous Opening Expenses | $54,000 to $66,000 |
| Utilities | Included in above |
| Travel and Living Expenses While Traveling | $2,000 to $41,000 |
| Additional Funds – 3 Months | $80,000 to $439,000 |
| TOTAL | $1,471,000 to $2,728,000 |
McDonald's Franchise Disclosure Document
Frequently Asked Questions
What funding options are available for a McDonald’s franchise?
Most franchise buyers in McDonald’s’s investment range finance their unit through an SBA 7(a) loan, with some multi-unit operators using SBA 504 loans for real estate. Buyers with rollable retirement funds sometimes use a ROBS structure to reduce debt service. See SharpSheets’ financial model hub for funding guidance.
How long does it take to pay back a McDonald’s franchise investment?
Payback periods for franchises in McDonald’s’s category typically run 3-7 years, depending on investment level, location performance, and financing structure. Actual payback varies significantly by unit performance and debt service obligations.
Who owns McDonald’s?
McDonald’s is a publicly traded company, meaning it is owned by shareholders who hold its stock. The largest shareholders typically include institutional investors like Vanguard Group and BlackRock, which are major asset management firms.
SharpSheets Editorial Team | sharpsheets.io | Last Updated: June 2026
→ How much does a McDonald’s franchise owner make? See our full owner income breakdown, data tables, and payback analysis on SharpSheets.
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. SharpSheets is an independent educational resource and is not affiliated with, endorsed by, or representing any franchisor mentioned on this website. Where noted, figures are taken from the franchisor’s Franchise Disclosure Document (FDD). In some cases, we may provide independent calculations or estimates based on publicly available information. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
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