MCDONALD'S
McDonald’s USA, LLC develops, operates, and franchises a system of quick-service restaurants that prepare, assemble, package, and sell a limited menu of value-priced foods using the proprietary McDonald’s System, which includes trademarks, operational manuals, real estate, marketing support, and expertise. Franchisees own and operate traditional restaurants, satellites in retail locations, small town oil (STO), small town retail (STR), or business facilities lease (BFL) sites, with about 95% of U.S. locations franchised to independent operators. The business targets a broad consumer market seeking consistent high standards of quality, uniformity in food, service, and decor at affordable prices.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: Financial performance data for 11,972 domestic traditional franchised McDonald's restaurants open at least 1 year as of December 31, 2023. Pro forma statements are based on 11,362 independent franchisee traditional restaurants.
* Estimated profit range (best_guess_profit_low and best_guess_profit_high) by applying the lowest (25.4%) and highest (26.6%) 'Operating Income Before Occupancy Costs' percentages (from the pro forma statements for various sales volumes) to the overall average gross revenue of $3,964,000. Operating Income Before Occupancy Costs is defined as excluding rent, royalty, D&A, interest, and income taxes, which is akin to EBITDA.
Extracted Item 19 Section
How MCDONALD'S Compares to Other Fast Food Franchises
Key Insights
- Higher investment than 91% of Fast Food franchises
- #2 largest franchise system in Fast Food
- One of the lowest SBA loan default rates in Fast Food
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
MCDONALD'S Current | $1.5M - $2.6M | $45K | N/A | 12,772 |
| Burger King | $2.1M - $4.7M | $50K | 4.5% | 19,732 |
| AFC | $45K - $151K | $6K | 9.5% | 3,572 |
| SONIC DRIVE-IN | $1.7M - $3.1M | $15K | 5.0% | 3,441 |
| JIMMY JOHN'S | $366K - $728K | $35K | 6.0% | 2,647 |
| ARBY'S | $645K - $2.5M | $38K | 4.0% | 2,316 |
Fast Food Average 127 franchises | $605K - $1.5M | $35K | 6.1% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 127 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2023)
Outlets by state across the United States
+39 more states
SBA Loan History
Historical SBA 7(a) loan data for MCDONALD'S franchisees (2010 - 2025)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
Primarily race, ethnicity, and age discrimination claims by current and former franchisees, along with breach of contract, termination, right of first refusal, and franchise relations law disputes.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a MCDONALD'S franchise?
The total initial investment to open a MCDONALD'S franchise ranges from $1,470,500 to $2,642,000. This includes a franchise fee of $45,000.
How much revenue does a MCDONALD'S franchise make?
According to the 2024 FDD, the average gross revenue for a MCDONALD'S franchise is $3,964,000. The median revenue is $3,797,000.
How much profit can you make with a MCDONALD'S franchise?
Based on the financial performance data in the FDD, estimated profit for a MCDONALD'S franchise ranges from $1,006,856 to $1,054,424 per year. Actual results vary based on location, management, and market conditions.
How many MCDONALD'S franchise locations are there?
As of the 2024 FDD, MCDONALD'S has 12,772 franchise locations.
Can you get an SBA loan for a MCDONALD'S franchise?
Yes, SBA loans are available for MCDONALD'S franchises. Historical data shows 13 SBA 7(a) loans have been approved for MCDONALD'S franchisees, with an average loan amount of $2,201,792. The historical default rate is 0.0%.
Is MCDONALD'S a good franchise to buy?
MCDONALD'S shows several positive indicators: established brand with 12,772+ locations, transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
Interested in MCDONALD'S?
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