FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for McDonald's using its latest 2026 FDD coverage.
Based on 2026 FDD · 8 filings in corpus · Latest FDD: 2026
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a McDonald's franchise shows an estimated initial investment of $1.5M – $2.7M. Reported owner economics show $154K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $45K franchise fee · 9% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
McDonald's requires a total initial investment of $1.5M to $2.7M (midpoint approximately $2.1M), with an initial franchise fee of $45K. The ongoing fee burden is 9% (5% royalty plus 4% advertising fund). This is below the industry average of approximately 14.2%, leaving more margin for the operator.
According to Item 19 of the 2026 FDD, the median revenue for McDonald's locations is $3.8M. The implied franchisee EBITDA is approximately $154K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 7.3% with a payback period of approximately 13.7 years.
McDonald's operates approximately 12,772 franchised units. Unit count is relatively stable with a 0.8% year-over-year change. The SBA 7(a) loan default rate of 0.0% is well below the industry average of approximately 9.4%, indicating strong franchisee financial outcomes.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2026 FDD filing. FDDIQ Editorial Team · Methodology
Unveiled June 1, 2026, at the biennial Worldwide Convention in Las Vegas, "McDonald's > NEXT" replaces "Accelerating the Arches" (2020) as the company's global growth strategy. CEO Chris Kempczinski framed it as a response to specialists like 7 Brew, Dave's Hot Chicken, and Raising Cane's redefining consumer expectations across chicken, beef, and beverages. Financial targets are expected at a dedicated investor day in September 2026.
Sources: McDonald's corporate NEXT announcement (June 1, 2026), CNBC, Restaurant Business Online, Quartz. This section will be updated after the September 2026 investor day when financial targets are disclosed.
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2010-2010). 1 loans across 1 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
Common questions buyers ask about McDonald's, answered from FDD and SBA data.
The total initial investment for a McDonald's franchise ranges from $1.5M to $2.7M, according to their Franchise Disclosure Document.
McDonald's charges a 5% royalty fee on gross sales.
The initial franchise fee for McDonald's is $45,000.
There are approximately 12,772 McDonald's franchise locations as of 2023.
The median revenue for a McDonald's franchise is $3.8M, with a cash-on-cash return of 7.3%, according to FDD Item 19 data.
McDonald's has an SBA loan default rate of 0.0% based on SBA 7(a) loan data.
Whether a McDonald's franchise is worth it depends on total startup cost, royalty burden, FDD Item 19 economics, SBA loan performance, and local operator execution. FDDIQ compares these signals against similar franchises so buyers can screen the opportunity before paying for diligence.
McDonald's > NEXT is the company's global growth strategy announced June 1, 2026, replacing Accelerating the Arches (2020). It has four pillars: menu innovation (hand-breaded chicken, beverage upgrades), consumer co-creation (influencer marketing, social engagement), restaurant technology (ArchIQ operating system, ARCHY AI drive-thru ordering, new restaurant prototype), and hospitality retraining. For franchisees across 13,500+ US locations, it means potential capex for kitchen equipment upgrades, remodel costs for the new prototype, and technology adoption — with financial targets expected at the September 2026 investor day.
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