4/10

Franchimp Summary Rating

4 /10
Lower than 66% of peers
1 /10
Higher than 94% of peers

Franchise Summary

Description
The franchisee will own and operate a quick service restaurant offering a limited menu of value-priced foods using the McDonald’s System.
Company Background
McDonald's is the world's leading global foodservice retailer with over 36,000 locations in more than 100 countries. With over 80 years of experience, McDonald's continues to set the pace in the industry by consistently introducing new products and services.
Franchise Opportunity
McDonald's is the world's leading global foodservice retailer with over 36,000 local restaurants serving more than 68 million customers in over 100 countries each day. McDonald's continues to evolve and grow by staying relevant to our customers' changing tastes and preferences. We are looking for a franchisee who shares our passion for delivering quality products, genuine service and a contemporary restaurant experience through their own locally-owned business. The opportunity to operate an independently owned and operated franchised restaurant allows you to take advantage of our national recognition, marketing support, purchasing power, operational systems and infrastructure while providing flexibility as you build your business from the ground up. Our comprehensive training program will provide you with all the tools necessary to succeed at opening your own successful location; including operations management techniques that have been refined over decades of success. You'll also enjoy ongoing support from experienced Franchise Ownership teams across North America - so there's no better time than now
Corporate Structure
McDonald’s USA, LLC is a Delaware limited liability company. Their principal place of business is 110 N. Carpenter Street, Chicago, Illinois,60607. They are a wholly-owned subsidiary of their parent and predecessor, McDonald’s Corporation, a Delaware corporation.

Earnings Transparency

7 /10
This Franchise discloses slightly more information about the financial performance of their franchisees compared to other franchises in the same industry

Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet

Financial Performance of "Standard" Units

Average Revenue Per Unit

Compared vs. Quick Service Restaurants (QSR) Industry

$2,500,000 / unit

Franchise Type: Standard

Average Revenue During 2020

$2,500,000
$112,269
Industry Low
$2,500,000
Industry High

Average Gross Profit Per Unit

Compared vs. Quick Service Restaurants (QSR) Industry

$1,814,000 / unit

Franchise Type: Standard

Average Gross Profit During 2020

$1,814,000
$95,987
Industry Low
$1,814,000
Industry High

Franchisee Attrition

4 /10
This franchise's rate of attrition in 2021 of 2.67% was Slightly Lower than the 3% in the Quick Service Restaurants (QSR) industry. Generally speaking, a higher rate of attrition represents a less stable franchise system and a lower rate of attrition indicates a more successful system
What's Included in franchise attrition?
We define the franchisee attrition rate as the sum of terminations, re-acquisitions by franchisor, non-renewals, and ceased operations, divided by the number of outlest at the start of the year. It is a strong indicator of the strength of the underlying operating model

Franchise Types Available

# Type Investment Fees

Management Team

# Name Position

Distribution of McDonald's Franchisees

McDonald's Franchise System Development in 2022

FAQ

How much investment do I need to start my own McDonald's business?
Franchisees typically require at least $1 to $2 investment to get their McDonald's business started
What are the initial franchise fees for McDonald's?
Franchisees typically need to pay at least $45 in fees directly to McDonald's in order to earn the right to launch their business
How much money can I make with a McDonald's franchise? What are the average revenues for a typical McDonald's business?
We estimate that the average revenue of an individual McDonald's unit is approximately $2,500,000. We based this on Item 19 in franchise disclosure document
How long do I need to commit to running a McDonald's unit? What is my contractual commitment?
The standard length for an initial franchise contract is 10 years. Renewals are also generally 10 years

Accessibility

1 /10
The Franchisor's investment costs ranges from $1,470,500 to $2,642,000 which is Much Higher than the $0 to $0 average in the Quick Service Restaurants (QSR) industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

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