McDonald's vs BURGER KING
Compare franchise fees, investment range, royalties, SBA lending performance, unit growth, and Item 19 transparency with a permanent shareable URL.
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McDonald's
QSR
Investment
$1.5M to $2.7M
Franchise fee
$45,000
Item 19 status
Revenue Only
Units
12,772
BURGER KING
QSR
Investment
$348K to $4.7M
Franchise fee
$50,000
Item 19 status
Revenue Only
Units
6,640
Lower entry cost
Leans right
Based on minimum initial investment.
Better disclosed economics
Even
Uses Item 19 availability and transparency status.
Lower SBA default risk
Leans left
Treat low-loan brands carefully, sample size matters.
| Metric | McDonald's | BURGER KING |
|---|---|---|
Franchise Fee | $45,000 | $50,000 |
Min Investment | $1.5M | $348K |
Max Investment | $2.7M | $4.7M |
Royalty Rate | 5.0% | 4.5% |
Ad Fund Rate | 4.0% | 4.5% |
Total Ongoing Burden Royalty plus ad fund when available. | 9.0% | 9.0% |
Median Revenue (Item 19) | $3.8M | $1.6M |
Cash-on-Cash Return Estimated when revenue and margin assumptions are available. | 7.3% | 2.5% |
Payback Period | 13.7 yrs | 40.0 yrs |
Revenue per Dollar Invested | 1.83x | 0.62x |
Franchised Units | 12,772 | 6,640 |
1-Year Net Unit Change | 102 | -1,116 |
Net Unit Growth Rate | 0.8% | -16.0% |
Net Closure Rate Net closure proxy based on disclosed unit change. | N/A | 14.4% |
SBA Default Rate | 0.0% | 3.3% |
SBA Loan Count Use this to judge whether SBA default data is statistically meaningful. | 1 | 133 |
Average SBA Loan Size | $80K | $1.0M |
Item 19 Status | Revenue Only | Revenue Only |
Has Item 19 | ✓ Yes | ✓ Yes |
Data Quality Score | 100 | 100 |
What stands out
- • McDonald's opens at $1.5M to $2.7M, while BURGER KING ranges from $348K to $4.7M.
- • McDonald's shows an Item 19 disclosure; BURGER KING shows an Item 19 disclosure.
- • McDonald's has 12,772 franchised units versus 6,640 for BURGER KING.
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Last updated: April 2026