What Are Operating Procedures of McDonald's Franchise
Ever wondered how to become a McDonald's franchisee? Discover the essential steps and financial commitments involved in owning a piece of this global fast-food empire. Learn what it takes to join their network and explore our comprehensive McDonald's Franchise Business Plan Template to kickstart your journey.
| # | Operating Procedure | Description |
|---|---|---|
| 1 | Franchisee Training Program | The McDonald's franchise training program is an extensive, self-paced curriculum spanning 9 to 18 months. It combines classroom instruction at Hamburger University with practical, hands-on experience in an operational restaurant, covering all facets of business management. |
| 2 | Location Determination | McDonald's Corporation, through its real estate division, determines the optimal locations for new franchise units based on thorough market research. Franchisees are typically offered existing restaurants or new sites selected and developed by McDonald's. |
| 3 | Franchise Agreement and Closing | The final step before opening involves the franchisee paying the remaining investment, signing a 20-year franchise agreement, and officially taking ownership. This is followed by coordinating a grand opening, whether for a new build or an existing restaurant transition. |
| 4 | Pre-Opening Preparations | Before the official opening, franchisees must ensure all staff are hired and adequately trained, inventory is procured through approved supply chains, and local marketing strategies are in place. These elements are crucial for a successful launch into the community. |
The financial commitment for a McDonald's franchise is substantial, with initial investments ranging from $1,470,500 to $2,642,000. A significant portion of this, between $500,000 and $1,000,000, is required in cash, alongside a comparable net worth. Beyond the initial franchise fee of $45,000, ongoing financial obligations include a 5% royalty fee and a 4% marketing fee on gross sales. Despite these considerable upfront and ongoing costs, the average annual revenue per unit is approximately $3,964,000, with an average breakeven time of 12 months and an investment payback period of 41 months.
On average, McDonald's units generate robust revenue, with the median annual revenue standing at $3,797,000. The cost of goods sold typically accounts for 28.4% of revenue, leaving a gross profit margin of 71.6%. Operating expenses, which include labor, utilities, and other overheads, represent 37.8% of revenue, resulting in EBITDA of 33.8%. Labor costs, including the franchisee's salary, are a significant component, averaging $1,387,000 annually. The advertising fee is mandated to be not less than 4% of gross sales, and other operating expenses, which encompass utilities, legal, accounting, insurance, taxes, and maintenance, also total $1,387,000 annually.
The McDonald's system is predominantly franchised, with the number of franchised units consistently exceeding corporate-owned units. In 2023, there were 12,764 franchised units compared to 685 corporate units, reflecting a strong reliance on the franchise model for expansion and operations. This vast network demonstrates the scalability and established nature of the McDonald's franchise opportunity.
Key Takeaways
- Owning a McDonald's franchise is a significant financial commitment, with total initial investment estimates ranging from $1,470,500 to $2,642,000, requiring at least $500,000 to $1,000,000 in liquid cash and a similar net worth.
- The initial franchise fee is $45,000, while ongoing fees include a royalty fee of 5% of gross sales and a marketing fee of 4% of gross sales, contributing to the brand's robust support system.
- McDonald's restaurants demonstrate strong revenue potential, with average annual revenue per unit at $3,964,000, and a healthy EBITDA of $1,339,000 (33.8% of revenue), indicating profitability for well-managed locations.
- The training program is extensive, lasting 9-18 months and including hands-on experience at Hamburger University, with the applicant personally responsible for travel and lodging costs.
- The franchise agreement is typically for 20 years, and the majority of McDonald's locations (over 95% in the US) are owned and operated by independent local business owners.
- The application process is rigorous and can take 12-18 months, involving multiple interviews, financial reviews, and an On-the-Job Evaluation to ensure suitability.
- While McDonald's does not offer direct financing, lenders often favor applicants due to the brand's high success rate, potentially financing up to 75% of the total cost, with investment payback typically around 41 months.
What Is The Business Model Structure?
The business model for a McDonald's franchise unit is fundamentally an owner/operator system. This means the franchisee is hands-on, managing the day-to-day operations of their restaurant. They leverage the immense power of the global brand, its established supply chain, and its significant marketing resources to drive success.
What is the McDonald's Franchise Unit operational framework?
The standard McDonald's franchise agreement is structured for a 20-year period. As of early 2025, a remarkable over 95% of McDonald's restaurants in the USA are independently owned and operated by local business owners. This decentralized ownership model is a core component of their operational framework. Franchisees are responsible for a monthly service fee, which as of 2025 stands at 40% of gross sales. Additionally, they pay a monthly rent to the corporation, which can range from 8.5% to 15% of gross sales, with the exact percentage influenced by the specific location and the corporation's investment in that site.
How is brand support structured for franchisees?
Franchisees benefit from comprehensive, world-class support designed to ensure consistency and quality. This support encompasses extensive operational training, strategic marketing initiatives, and guaranteed access to a global supply chain. A significant aspect of this support is the shared marketing investment. Franchisees contribute a fee, set at a minimum of 4% of gross sales, to a national advertising fund. This contribution has remained a consistent benchmark into 2025. This robust support system is a key reason for the high McDonald's franchise success rate, with a franchisee turnover rate that has consistently stayed below 2% annually through late 2024 and into 2025.
For those considering this opportunity, understanding the financial commitment is crucial. The initial investment can range from $1,470,500 to $2,642,000. The initial franchise fee is $45,000, with ongoing royalty fees for a new unit at 5% and a marketing fee of 4%. Potential franchisees should be prepared with $500,000 to $1,000,000 in cash and possess a similar net worth. The average annual revenue per unit is approximately $3,964,000, offering a clear picture of potential profitability. You can explore What Are the Pros and Cons of Owning a McDonald's Franchise? to gain further insights.
Key Considerations for Aspiring Franchisees
- Deep Operational Involvement: Be prepared to be actively involved in the daily management and operations of your restaurant.
- Financial Readiness: Ensure you meet the substantial cash and net worth requirements, typically between $500,000 and $1,000,000.
- Long-Term Commitment: The franchise agreements are for 20 years, indicating a significant long-term business commitment.
- Adherence to Standards: Embrace the brand's operational standards and contribute to national marketing efforts.
How Profitable Is a McDonald's Franchise?
Is it profitable to own a McDonald's franchise?
Yes, owning a McDonald's franchise is generally considered a profitable venture. The brand's strong market presence and consistent customer demand contribute to robust sales figures. As of early 2025, the average US McDonald's restaurant generates over $3.9 million in annual sales, according to Franchise Disclosure Document data.
Profitability hinges on effective management. After accounting for costs like food (around 28.4%), labor (which can be around 25-28%), and ongoing fees, a well-managed unit can achieve a healthy cash flow. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for an average unit stands at approximately $1.3 million, or about 33.8% of revenue. This strong performance is further supported by the company's ongoing investments in menu innovation and technology, which have historically driven same-store sales increases, with projections for 2025 indicating a further 3-5% growth.
What are the ongoing franchise fees?
When you own a McDonald's franchise, there are specific ongoing financial commitments to the corporation. These primarily consist of a service fee and a rent payment, both typically calculated as a percentage of gross monthly sales.
As of 2025, franchisees are required to pay a service fee, which represents 4% of their gross monthly sales. This fee covers the essential use of the McDonald's brand name, its established operational systems, and ongoing support. In addition to the service fee, franchisees also pay a monthly base rent or a percentage of their gross sales as rent. This rent typically ranges from 8.5% to 15% of monthly gross sales. For a restaurant with average annual sales of $3.96 million, this rent alone could amount to over $300,000 annually, highlighting the significant financial commitment involved in operating a McDonald's franchise.
Key Considerations for Profitability
- Sales Volume: The primary driver of profitability is the restaurant's gross sales. High-traffic locations and effective marketing are crucial.
- Cost Management: Controlling food costs, labor expenses, and other operating overheads directly impacts the bottom line.
- Operational Efficiency: Streamlined operations, from order taking to food preparation, can reduce waste and improve customer service, leading to higher sales and repeat business.
- Brand Strength: The established brand recognition and customer loyalty reduce marketing costs and attract a steady stream of customers.
For those exploring opportunities within the quick-service restaurant sector, understanding these financial structures is vital. It's also worth considering What Are Some Alternatives to McDonald's Franchise? to ensure you're making the most informed decision for your investment goals.
What Are The Financial Requirements?
How much money do you need to own a McDonald's?
To own a McDonald's franchise, candidates must demonstrate significant financial liquidity. The total investment varies greatly depending on whether you are purchasing an existing restaurant or developing a new one.
While the minimum net worth is not officially published by McDonald's, industry estimates for 2025 place it between $15 million and $25 million. This substantial figure is designed to ensure financial stability and the capacity to handle the investment required.
A crucial part of the McDonald's franchise requirements is having a minimum of $500,000 in liquid, unencumbered assets. This initial liquid capital is a non-negotiable component for consideration for a McDonald's franchise opportunity.
What is the total McDonald's franchise cost?
The estimated total cost to open a new McDonald's restaurant in 2025 ranges from $1.47 million to $2.64 million. This comprehensive figure includes various components such as real estate, construction, equipment, and initial franchise fees.
The initial franchise fee paid to McDonald's Corporation is $45,000. This is a one-time fee that is part of the overall investment calculation.
For those looking to purchase an existing restaurant, the cost is determined by the seller. However, a typical requirement is an initial down payment of 25% of the total purchase price. The remaining balance can often be financed over a period not exceeding seven years.
Key Financial Considerations for Prospective Franchisees
- Liquidity is Paramount: Ensure you have readily accessible funds to cover the initial investment and ongoing operational costs. The minimum required liquid assets of $500,000 are just the starting point.
- Understand Total Investment: The cost to open a new restaurant, estimated between $1.47 million and $2.64 million, encompasses much more than just the franchise fee. Factor in real estate, equipment, and initial operating capital.
- Financing Options: While McDonald's requires a significant upfront cash investment, explore financing options for the remaining balance when purchasing an existing unit.
It's important for aspiring franchisees to thoroughly review the Franchise Disclosure Document (FDD) for the most accurate and up-to-date financial information. Understanding these figures is a critical step in evaluating if you are ready to What Are the Pros and Cons of Owning a McDonald's Franchise?
Operating Procedure To Fulfill Eligibility Criteria For A Mcdonald'S Franchise Unit
What are the mcdonalds franchise eligibility criteria?
To successfully navigate the path to owning a McDonald's franchise, understanding and meeting the specific eligibility criteria is paramount. The company places a high value on business acumen, requiring candidates to possess substantial management experience, particularly with profit and loss (P&L) responsibility. A solid financial standing, evidenced by a strong credit history, is also a critical component. As of 2025, prospective franchisees must demonstrate they have at least $500,000 in non-borrowed personal resources available to fund a significant portion of the initial investment. Furthermore, a core tenet of how to become a McDonald's franchisee is the commitment to being a full-time, on-site owner-operator. McDonald's is looking for individuals who will actively manage the day-to-day operations, rather than passive investors.
The financial commitment for a McDonald's franchise unit can range significantly, with the low initial investment starting at $1,470,500 and the high initial investment reaching $2,642,000. This investment includes the initial franchise fee, which is $45,000. Beyond this, ongoing fees include a royalty fee of 5% and a marketing fee of 4% of gross sales. The cash requirement typically falls between $500,000 and $1,000,000, mirroring the net worth requirement for applicants.
What personal attributes are required?
Beyond financial and business qualifications, McDonald's looks for specific personal attributes in its franchisees. A growth mindset, coupled with strong interpersonal skills and a genuine commitment to customer service and community involvement, are highly valued. These qualities are essential for fostering a positive work environment and building strong customer relationships. A thorough background check is a standard part of the McDonald's franchise application process, and maintaining a clean personal and financial history is a non-negotiable requirement for anyone aspiring to own a McDonald's franchise.
Applicants must also show a clear understanding of the brand's core values. This includes a willingness to fully commit to the rigorous McDonald's franchise training program, which is designed to equip new franchisees with the knowledge and skills necessary for success. This intensive training is a critical step before final approval is granted, ensuring all franchisees are well-prepared to uphold the brand's standards and operational excellence.
Understanding the financial benchmarks is crucial when considering the McDonald's franchise opportunity. For example, the average annual revenue per unit is approximately $3,964,000, with a median of $3,797,000. While the breakeven time is often around 12 Months, investment payback is typically around 41 Months. Exploring What Are the Pros and Cons of Owning a McDonald's Franchise? can provide further context for these figures.
Tips for Meeting Eligibility Criteria
- Demonstrate P&L Experience: Actively seek roles or projects that offer direct responsibility for managing budgets and profitability to showcase your financial management skills.
- Build Strong Credit: Focus on maintaining a healthy credit score by managing debts responsibly and paying bills on time. This is a key indicator for financial institutions and the franchisor.
- Cultivate Leadership Skills: Engage in leadership opportunities, whether in your current role or through community involvement, to prove your ability to manage and motivate teams effectively.
- Prepare Your Financial Documentation: Have clear, organized records of your assets and liabilities ready to present, especially regarding your non-borrowed personal resources.
| Key Financial Requirement | Amount |
| Minimum Non-Borrowed Personal Resources (as of 2025) | $500,000 |
| Initial Franchise Fee | $45,000 |
| Royalty Fee | 5% of Gross Sales |
| Marketing Fee | 4% of Gross Sales |
| Financial Performance Benchmark | Average Amount |
| Average Annual Revenue per Unit | $3,964,000 |
| Gross Profit Margin | 71.6% |
| EBITDA | $1,339,000 |
Operating Procedure To Complete The Application For A Mcdonald'S Franchise Unit
What are the steps to opening a mcdonalds?
The journey to becoming a franchisee involves a structured application process. To begin, you'll need to complete the official online application. This is the foundational step in the McDonald's franchise application process and serves as an initial screening to assess your financial qualifications and overall business background. It's crucial to present your experience and financial readiness clearly from the outset.
Following the initial submission, qualified candidates are invited to a series of interviews. This typically starts with a phone screening to delve deeper into your application details, and then progresses to more in-depth in-person interviews with McDonald's franchising and regional leadership teams. These interviews are designed to evaluate your fit with the brand and your understanding of the business.
The final stages of the process include a panel interview and a mandatory On-the-Job Evaluation (OJE). The OJE is an intensive period, usually lasting several days, where you’ll work directly in a restaurant. This hands-on experience is invaluable for understanding the operational demands and day-to-day realities of running a McDonald's. The entire process, from application to potential approval, can realistically take between 12 to 18 months, as of 2025. This timeframe allows both you and McDonald's to thoroughly evaluate the opportunity.
What is needed for a mcdonalds franchise business plan?
While McDonald's provides a robust and proven operational system, prospective franchisees are expected to develop a preliminary McDonald's franchise business plan. This plan should articulate your understanding of the local market, your financial projections, and your personal management philosophy. It's your opportunity to demonstrate how you'll leverage the McDonald's system to achieve success in your specific territory.
Your business plan must clearly outline how you intend to meet the brand's stringent operational standards, implement effective local marketing initiatives, and manage staffing and customer service to meet growth targets. These projections should be realistic and align with the known McDonald's franchise cost structure, including accounting for any debt financing required to meet the total investment. For example, the total investment typically ranges from $1,470,500 to $2,642,000.
A key component of this plan involves detailed financial projections. These should be realistic and demonstrate your ability to manage the financial aspects of the business, including covering the initial franchise fee of $45,000 and ongoing costs like the 5% royalty fee and 4% marketing fee. The plan needs to reflect a solid understanding of the financial commitments and potential returns, ensuring they align with the McDonald's franchise requirements.
Key Considerations for Your Franchise Business Plan
- Market Analysis: Thoroughly research your target demographic, local competition, and any unique market opportunities.
- Financial Projections: Develop realistic revenue forecasts, expense budgets, and cash flow statements, considering the average annual revenue per unit is approximately $3,964,000.
- Management Strategy: Detail your approach to staffing, training, customer service, and operational efficiency.
- Marketing Plan: Outline how you will implement local marketing strategies to drive traffic and build brand loyalty.
| Initial Investment Range | $1,470,500 - $2,642,000 |
| Required Cash Down Payment | $500,000 - $1,000,000 |
| Net Worth Requirement | $500,000 - $1,000,000 |
For those exploring different avenues within the quick-service restaurant industry, understanding the nuances of various franchise models is key. What Are Some Alternatives to McDonald's Franchise? can offer valuable insights into other available opportunities.
Operating Procedure To Finance A Mcdonald'S Franchise Unit
How is a McDonald's Franchise Unit typically financed?
Financing a McDonald's franchise unit involves a multi-faceted approach, primarily relying on a combination of the franchisee's personal liquid capital and securing third-party financing. McDonald's itself does not offer direct financing options. However, they have cultivated strong relationships with numerous national lenders who are familiar with the brand's proven business model. This established network often facilitates the lending process for qualified applicants.
As of 2025, many lenders view McDonald's franchise applicants favorably due to the brand's consistently high success rate. This can translate into favorable lending terms, with some lenders potentially financing up to 75% of the total 'cost to open mcdonalds restaurant' for eligible buyers. It's crucial to remember that the required $500,000 in liquid assets must serve as the down payment and cannot be borrowed. This stipulation ensures that franchisees possess substantial personal equity invested in their business from the outset.
What are the key financing considerations?
When considering how to finance a McDonald's franchise, a comprehensive understanding of the total financial commitment is paramount. This includes not only the initial franchise fee, which stands at $45,000, but also significant costs associated with equipment, often exceeding $1 million. Furthermore, adequate working capital for the initial several months of operation is a critical component of the financial picture.
Should you opt to purchase an existing McDonald's restaurant, the sale price is a matter of negotiation with the current franchisee. The required 25% down payment is then calculated based on this final negotiated price. For high-volume locations, this down payment can frequently surpass $1 million as of 2025. It is imperative for aspiring owners to meticulously factor potential debt service payments into their projected financial statements. This ensures that the anticipated cash flow can comfortably cover not only loan repayments but also all ongoing operational costs and franchise fees.
Tips for Financing Your McDonald's Franchise
- Build a Strong Personal Financial Profile: Lenders will scrutinize your credit history, net worth, and liquidity. Aim for a net worth of at least $1 million, with $500,000 in liquid assets, to meet typical McDonald's franchise requirements.
- Develop a Detailed Business Plan: A well-researched McDonald's franchise business plan, supported by realistic financial projections, is essential for securing loans. This plan should clearly outline your market analysis, operational strategy, and projected profitability.
- Explore Lender Relationships: Leverage McDonald's established relationships with national lenders. Research and connect with these institutions early in the process to understand their specific lending criteria for franchise opportunities.
- Understand All Costs: Beyond the initial investment, factor in ongoing fees such as the 5% royalty fee and the 4% marketing fee. These recurring costs directly impact your cash flow and profitability.
Understanding the full financial scope is key when exploring the 'mcdonalds franchise opportunity'. The initial investment can range from $1,470,500 to $2,642,000, with the required cash component being at least $500,000. This demonstrates that 'how much money do you need to own a mcdonalds' is a substantial figure, requiring careful financial planning.
| Initial Investment Range | $1,470,500 - $2,642,000 |
| Franchise Fee | $45,000 |
| Required Liquid Assets | Minimum $500,000 |
| Royalty Fee | 5% of Gross Sales |
| Marketing Fee | 4% of Gross Sales |
For those looking into 'how to become a mcdonalds franchisee', the financial planning stage is critical. When considering 'what are the steps to opening a mcdonalds', securing financing is a pivotal early step. The 'mcdonalds franchise cost' is significant, and a solid financial foundation is non-negotiable. 'Is it profitable to own a mcdonalds franchise' depends heavily on managing these initial and ongoing costs effectively.
The 'mcdonalds franchise eligibility criteria' includes robust financial standing. Aspiring franchisees must demonstrate the capacity to meet these financial demands. For those interested in scaling their investment, understanding the financing for multi-unit operations is also crucial. For a broader perspective on different investment avenues, consider exploring What Are Some Alternatives to McDonald's Franchise?
Operating Procedure To Undergo Training For A Mcdonald'S Franchise Unit
Embarking on the journey to own a McDonald's franchise involves a rigorous and comprehensive training program designed to equip you with all the necessary skills to manage a successful restaurant. This isn't a brief orientation; it's a deep dive into the operational heart of one of the world's largest quick-service restaurant chains.
What does the mcdonalds franchise training program involve?
The McDonald's franchise training program is a substantial undertaking, typically spanning between 9 to 18 months. This is a self-directed program, meaning you'll be managing your learning pace, and it's conducted on a part-time basis without compensation. The curriculum is meticulously designed to cover every facet of running a McDonald's business. You'll receive classroom instruction, including specialized sessions at the renowned Hamburger University in Chicago. Complementing this academic learning is extensive hands-on operational training within an approved McDonald's restaurant. By 2025, the training curriculum is set to encompass all critical business areas, from day-to-day operations and marketing strategies to human resources management, accounting practices, and essential equipment maintenance. The goal is to ensure that by the time you own a McDonald's franchise, you are a fully capable and knowledgeable operator.
Who must complete the training?
The commitment to this training is personal and non-delegable. The primary applicant, who will be the on-site operator of the franchise, must personally complete the entire training program. This responsibility cannot be passed on to a hired manager or even a family member. This hands-on approach is a critical component of the McDonald's franchise application process. Your approval to purchase a restaurant is directly contingent upon your successful completion of this demanding program. It's also important to budget for the associated costs. As of 2025, applicants are responsible for their travel and lodging expenses for all training sessions, including those at Hamburger University. These costs are estimated to range from $5,000 to $10,000 and should be factored into your initial investment calculations when considering the overall McDonald's franchise cost.
Key Takeaways for Franchise Training
- Personal Commitment: The primary applicant must complete all training personally.
- Duration: Expect a commitment of 9 to 18 months, part-time.
- Cost: Factor in approximately $5,000-$10,000 for travel and lodging for training.
- Outcome: Successful completion is a prerequisite for franchise approval.
Understanding the training is just one piece of the puzzle when exploring the McDonald's franchise opportunity. For a broader perspective on what it entails to become a franchisee, you might find it beneficial to explore What Are the Pros and Cons of Owning a McDonald's Franchise?
| Training Program Duration | 9-18 Months |
| Training Format | Classroom (Hamburger University) & Hands-on Operational |
| Cost of Training (Travel/Lodging) | Estimated $5,000 - $10,000 (2025) |
The initial investment for a McDonald's franchise can range from $1,470,500 to $2,642,000, with a required cash injection of $500,000 to $1,000,000. This investment covers not just the franchise fee of $45,000, but also the build-out, equipment, and initial operating capital needed before you even begin earning revenue. Understanding the financial commitments is crucial when planning how to franchise McDonald's.
Operating Procedure To Launch A McDonald's Franchise Unit
How are mcdonalds franchise locations available determined?
When you're looking to own a McDonald's franchise, the corporation handles the critical decision of where your restaurant will be located. Their dedicated real estate division conducts thorough market research to pinpoint sites that show the strongest potential for success. This means that as a prospective franchisee, you don't get to pick your own spot; instead, McDonald's offers you a restaurant at a site they've carefully selected and developed.
Information regarding specific mcdonalds franchise locations available is typically shared only with candidates who have successfully navigated the application and training phases. It's interesting to note that projections for 2025 indicate that approximately 70% of new franchisees entering the system will be purchasing an existing restaurant from a retiring owner. The remaining 30% will be offered a brand-new location.
What is the final step before opening?
The very last stage before you can officially open your doors as a McDonald's franchisee is the closing process. This is where you'll finalize all the financial aspects, including paying the remaining funds required. You'll also sign the 20-year franchise agreement, formally taking ownership of the restaurant. For those opening a new restaurant, this phase involves close coordination with construction teams and McDonald's corporate staff to ensure a smooth grand opening. If you're acquiring an existing restaurant, there will be a transition period working alongside the previous owner.
Before the grand opening, several key operational elements must be in place. This includes having all your staff hired and fully trained according to McDonald's standards, ensuring inventory is ordered through the approved supply chain, and having local marketing initiatives planned to create a strong launch within the community.
Key Considerations Before Opening
- Staffing: Ensure all team members are hired and have completed the comprehensive McDonald's training program.
- Inventory: All initial stock must be ordered and received through McDonald's approved suppliers.
- Marketing: Develop and prepare local marketing plans to drive initial customer traffic and build community awareness.
Understanding the investment is crucial. The initial investment for a McDonald's franchise can range from $1,470,500 to $2,642,000. This includes an initial franchise fee of $45,000. To qualify, you'll need to demonstrate a minimum net worth of $500,000 to $1,000,000, with a significant portion of that, between $500,000 and $1,000,000, needing to be liquid cash. The royalty fee is typically 5% of gross sales, with an additional 4% allocated to the marketing fund.
| Financial Metric | Amount ($) | Percentage of Revenue (%) |
| Average Annual Revenue | $3,964,000 | 100.0% |
| Cost of Goods Sold (COGS) | $1,125,000 | 28.4% |
| Gross Profit | $2,839,000 | 71.6% |
| Operating Expenses | $1,500,000 | 37.8% |
| EBITDA | $1,339,000 | 33.8% |
It's also important to note the potential for profitability. The average annual revenue per unit is substantial, standing at $3,964,000. While breakeven can often be achieved within 12 months, investment payback typically occurs around 41 months. In 2023, there were 12,764 franchised units operating globally, demonstrating the scale of the McDonald's franchise system.