McDonald's
Low RiskFranchise Disclosure Document Analysis — 2024 FDD
Franchise Fee
$45,000
Total Investment
$1.3M–$2.3M
Royalty Rate
4%
Units
40,275 open / 138 closed
Key Findings
Item 19 — Financial Performance
Median annual sales of $3.3M per location. Top quartile exceeds $4.5M.
Brand Strength
40,275 active units worldwide. Franchise system has grown consistently for 50+ years with strong unit economics.
Litigation — Item 3
Standard litigation volume for system size. No unusual patterns or regulatory actions flagged.
Renewal & Transfer — Item 17
20-year franchise term with renewal option. Transfer requires franchisor approval and training of new operator.
Strong Item 19 disclosure
McDonald's provides detailed financial performance data including median sales, cost breakdowns, and unit-level profitability metrics across all locations.
High initial investment — SBA financing typically required
Total investment ranges from $1.3M to $2.3M. Most franchisees use SBA 7(a) loans covering 70–80% of startup costs. Verify lender familiarity with McDonald's system.