How Much Does a McDonald’s Franchise Cost?
Roughly $1.47 million to $2.8 million to open, a $45,000 fee to join, and half a million in cash you already have rather than money you can borrow. Then there is the part almost nobody mentions.
The figure people usually quote is the $45,000 franchise fee, because it is the number on the application page. It is also the smallest number in the whole exercise and the least relevant to whether you can actually do this.
What it costs to open one
| Cost | Amount | Notes |
|---|---|---|
| Initial franchise fee | $45,000 | Paid once, to the corporation |
| Total investment | $1.47m to $2.8m | Equipment, seating, decor, signage, kitchen fit out, working capital |
| Liquid capital required | About $500,000 | Must be unborrowed, meaning cash you already hold |
| Deposit on an existing restaurant | At least 25 percent | Down payment on the purchase price |
The range is wide because it depends on the size of the restaurant, whether it has a drive thru, how much building work is needed and what the local costs are. The equipment alone is a substantial figure before anything else is counted.
The liquid capital requirement is the one that eliminates most people. It is not a measure of what you can raise, it is a test of what you already have. Borrowed money does not count toward it.
What you pay every year afterwards
The purchase is not the end of it. Three ongoing payments come off the top of sales, not off profit.
| Ongoing payment | Rate | Paid to |
|---|---|---|
| Royalty | About 5 percent of sales | McDonald’s Corporation |
| Marketing contribution | About 4 percent of sales | National and local advertising funds |
| Rent | A percentage of sales | McDonald’s Corporation, as landlord |
The part nobody mentions
Even with the money, you very probably cannot open a brand new McDonald’s.
The company almost never approves a first time operator for a new build site. New locations are generally offered to existing franchisees with a proven record, because the corporation is placing a multi million dollar asset and wants someone who has already run one.
What newcomers are routed into instead is buying an existing restaurant from a departing franchisee, with a down payment of at least 25 percent of the purchase price. You are stepping into a going concern with its own sales history, its own staff and its own lease.
That is not necessarily worse. An existing restaurant has demonstrated revenue, which is easier to finance against and far less risky than a new site. But it does mean the mental picture of choosing a corner and building your own is not how this works.
What you are actually buying
It is worth being precise, because the words franchise and own do a lot of work here.
| You get | You do not get |
|---|---|
| A licence to operate under the brand | Ownership of the brand or any say in it |
| The business, its revenue and its staff | The land or the building in most cases |
| Training, systems and supply chain access | Freedom to change the menu, suppliers or pricing structure |
| A lease on the site | Security independent of that lease |
The linkage between the lease and the franchise agreement matters. An operator who falls out of compliance is not only risking a trademark licence, they are risking the premises. That is the leverage the property model was designed to create.
Is it a good business?
It can be, and it is not the passive income people imagine.
The economics are real. A McDonald’s restaurant generates high revenue by fast food standards, the brand does the marketing, and demand is unusually resilient. Multi unit operators who build up a portfolio of restaurants over years are the ones for whom the model works best, because the fixed costs of running an operation spread across several sites.
The constraints are equally real. Roughly 9 percent of sales leaves before rent. You have little control over pricing, promotions or the menu, so a national value campaign that squeezes margins is not something you can opt out of. And McDonald’s expects owner operators to be hands on rather than absentee investors, which is a job as much as an investment.
Anyone seriously considering it should read the franchise disclosure document rather than any summary, including this one, and take independent financial advice.
Related Questions
How much does a McDonald’s franchise cost?
Total investment runs roughly $1.47 million to $2.8 million depending on the size of the restaurant, whether it has a drive thru and local build costs, plus a $45,000 initial franchise fee. McDonald’s also requires around $500,000 in liquid capital that has not been borrowed, meaning cash you already hold rather than money you can raise.
What are the ongoing fees for a McDonald’s franchise?
About 5 percent of sales in royalty and about 4 percent in marketing contribution, both taken off turnover rather than profit. On top of that, McDonald’s generally owns or controls the site and charges rent as a percentage of sales, so a third slice of turnover goes to the same company as landlord.
Can you open a brand new McDonald’s?
Almost never as a first time operator. New build sites are generally offered to existing franchisees with a proven record, because the corporation is placing a multi million dollar asset. Newcomers are routed into buying an existing restaurant from a departing franchisee with a down payment of at least 25 percent of the purchase price.
Do you own the building when you buy a McDonald’s franchise?
Usually not. In most cases McDonald’s owns or holds a long lease on the land and building and subleases it to you, with the lease and the franchise agreement linked. An operator who falls out of compliance risks the premises as well as the licence, which is the leverage the property model was designed to create.
How much liquid capital do you need for a McDonald’s?
Around $500,000, and critically it must be unborrowed. It is a test of what you already hold rather than what you can raise, which is the requirement that eliminates most applicants before anything else is considered.
Is owning a McDonald’s franchise profitable?
It can be, but it is a job rather than passive income. Revenue per restaurant is high by fast food standards and demand is resilient, and multi unit operators who build a portfolio over years do best because fixed costs spread across sites. Against that, roughly 9 percent of sales leaves before rent, you have little control over pricing, promotions or the menu, and McDonald’s expects hands on owner operators rather than absentee investors.
More on McDonald’s
About this guide. USA Food Menu is an independent reference site and is not affiliated with McDonald’s Corporation. Fees, investment ranges and capital requirements were checked against published franchise disclosure information and industry reporting in 2026 and change over time and by market. Nothing here is financial, legal or investment advice, and anyone considering a franchise should read the current franchise disclosure document and take independent advice. Menu prices and calories are on the McDonald’s menu.
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