McDonald's Franchise Cost & Requirements (2026 Review)

McDonald's is the most recognized restaurant brand in the world, operating across 119 countries with more than 39,000 locations. For prospective franchise buyers in the United States, it represents a premium investment with a well-documented return profile — and a financial bar that eliminates most applicants before the process starts.

How much does a McDonald's franchise cost?

Total initial investment ranges from $525,000 to $2,728,000 depending on location type. Traditional freestanding restaurants typically fall between $1,471,000 and $2,728,000. The $45,000 franchise fee is payable at signing. McDonald's requires franchisees to have at least $500,000 in liquid, unencumbered assets — meaning cash, not borrowed capital. Total net worth requirements generally exceed $1 million for most applicants.

Ongoing fees

Franchisees pay a 5% royalty on gross sales for new agreements (up from 4% in prior years). An additional 4% of gross sales goes toward the national advertising fund. Combined, that is 9% of every dollar in revenue before labor, food, occupancy, or any other operating cost. McDonald's also owns the real estate in most cases, and operators pay rent back to corporate — an additional cost that varies by location.

What operators earn

McDonald's has publicly shared that franchisees earn approximately $300,000 per year in average owner profit. On an average unit volume of around $3.8 million, that represents roughly an 8% net margin after all fees and operating costs. For operators running multiple locations, earnings scale — but so does complexity.

McDonald's vs. other QSR franchises

The 5% royalty is lower than many comparable brands, which helps franchisee economics despite the high revenue base. The real estate model — where corporate owns the property and operators lease it — limits flexibility but also reduces the franchisee's upfront real estate risk. The tradeoff is that operators do not build equity in the physical asset.

Who McDonald's may fit best

McDonald's is best suited for buyers who have significant liquid capital, want a proven and heavily marketed brand, and are prepared to manage a high-volume operation. First-time buyers with limited capital will typically not qualify. Experienced multi-unit operators and buyers with restaurant backgrounds are the more common profile.

Bottom line

McDonald's offers a strong return profile, exceptional brand recognition, and a well-resourced system. The financial barrier is real — $500K liquid minimum is not negotiable — but operators who qualify and execute well can build a meaningful income stream. Run the local market analysis carefully before committing.