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.
Franchise Costs
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
Key Insights
- Higher investment than 91% of Fast Food franchises
- #1 largest franchise system in Fast Food
- One of the lowest SBA loan default rates in Fast Food
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
MCDONALD'S Current | $1.5M – $2.6M | $45K | N/A | 12,772 |
| 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 |
| ARBY'S | $645K – $2.5M | $38K | 4.0% | 2,286 |
Fast Food Average 126 franchises | $594K – $1.5M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 126 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
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
12,768 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
12,768 Contacts Available
Unlock all MCDONALD'S franchisee contacts with verified contact information
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)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
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.
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