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.

Want the full McDonald's FDD analysis?

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

View Full McDonald's Profile

Compare this franchise against the market

Before you rely on one brand's FDD, compare its startup cost, owner earnings, SBA default history, and ROI against the broader franchise market.

Use the franchise cost calculator Estimate franchise ROI Check SBA default rates Compare two franchise brands

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