How much money do you need to buy a McDonald's franchise?

McDonald's global success is incomparable. The fast food chain has more than 36,500 restaurants, distributed across the 119 countries in which it operates, according to 'Business Insider'.

Of the total number of stores around the world, around 80% are independent franchisees, the secret to the success of this business model that has led to annual global revenues of $25 billion.

The question that many people ask and often has no answer is, how much does it cost to open a McDonald's franchise?

The total investment to open a McDonald’s franchise in 2024 ranges from $1.5 million to $2.5 million. This includes a $45K franchise fee. McDonald’s also has a liquid cash requirement of at least $500K for a McDonald's franchise, according to ‘1851 Franchise’.

McDonald’s offers two types of purchases for a McDonald's franchise: new or existing. For new restaurants, the down payment is 40% of the total cost. For existing restaurants, the down payment is 25% of the total cost.

To this must be added a 5% royalty on gross sales, as well as a 4% of gross sales as an Advertising and Marketing fee, which the company invests in its recognizable campaigns.

In total, a McDonald's franchisee must expect to pay the company between 14 and 18% of gross sales in fees.

It may depend on the country, but usually, is McDonald's that provides the premises, as well as the investment in construction, while it is the franchisee who covers the restaurant's movable assets: equipment, furniture and decoration.

The choice of location is a key element in the company's strategy for new openings.

In addition, investors must take into account that they will be managing a team of around 50 employees approximately.

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