McDonald's Franchise Cost and Profits in 2026

By FDDIQ Research Team | April 2026

Based on 2025 FDD Filing

Quick Summary

$45,000

Franchise Fee

$2.1M

Midpoint Investment

9.0%

Total Fees

$3.8M

Median Revenue

+102

Net Growth

Cost Breakdown

Fee	Amount
Franchise Fee	$45,000
Total Investment Range	$1.5M - $2.7M
Midpoint Investment	$2.1M
Royalty Rate	5.0%
Advertising Fund	4.0%
Total Ongoing Fees	9.0%

Revenue and Profit Analysis

The median McDonald's franchise generates $3.8M in annual revenue. With estimated margins of 13%, that is approximately $498,940 in annual EBITDA.

Revenue per dollar invested: 1.83x.

Unit Count

McDonald's has 12,772 franchised units. Added 102 net units (0.8% growth).

SBA Loan Performance

SBA default rate: 0.0% across 1 loans. This is below the franchise industry average (~7-8%).

Frequently Asked Questions

How much does a McDonald's franchise cost?

A McDonald's franchise requires a $45,000 franchise fee with total investment ranging from $1.5M to $2.7M. The midpoint investment is approximately $2.1M.

How much do McDonald's franchise owners make?

Based on the most recent FDD, the median McDonald's location generates $3.8M in annual revenue. With estimated industry margins of 13%, that translates to approximately $498,940 in EBITDA before debt service.

What is the McDonald's royalty rate?

McDonald's charges a 5% royalty on gross sales plus a 4.0% advertising fund, for a total ongoing fee burden of 9.0%.

Is a McDonald's franchise worth it?

Whether McDonald's is worth it depends on your market, experience, and financial goals. The brand is growing at 0.8% annually. The SBA loan default rate is 0.0%. Review the latest FDD thoroughly and validate with existing franchisees before investing.

What is the McDonald's franchise SBA loan default rate?

Based on SBA loan data, McDonald's has a 0.0% default rate across 1 loans. This is below the overall franchise industry average.

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Detailed financial data, Item 20 outlet counts, litigation history, and more.

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