McDonald's
McDonald's USA, LLC
Company Information
110 N. Carpenter Street
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.
We develop, operate, franchise, and service a system of restaurants that prepare, assemble, package, and sell a limited menu of value-priced foods under the McDonald’s System in the U.S. The “McDonald’s System” is a concept of restaurant operations that includes, among other things, certain rights in trademarks, manuals, and other confidential business information; operational, real estate, and marketing information; and the expertise and continuing information that we provide. All McDonald’s restaurant businesses in the U.S. are operated under franchise agreements and are owned by franchisees who are independent third parties or by our wholly-owned subsidiaries (“McOpCo companies”). Currently, about 95% of all U.S. restaurants are franchised to independent franchisees and about 5% are franchised to McOpCo companies. McDonald’s restaurants offer the public a high standard of quality and uniformity in food, service, and decor. McDonald’s restaurants are located in freestanding buildings, storefronts, food courts, and other locations that are appropriate to McDonald’s image. A grant of a McDonald’s franchise authorizes you to operate a McDonald’s restaurant business at a specific location and to use the McDonald’s System in the operation of that restaurant business for a specific period of time, usually 20 years. We also grant franchises for McDonald’s restaurant businesses located in retail stores such as Walmart. We call these satellite (“Satellite”) locations. McDonald’s restaurants located in strip centers, airports, universities, shopping malls, hospitals, and other diverse locations may also be Satellites. Satellites may serve a scaled-down menu of a traditional McDonald’s restaurant and, in some cases, will also serve non-McDonald’s trademarked products. The term of the franchise for a Satellite depends on its location.
9 Ongoing Lawsuits
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Franchise Rating
Franchimp Summary Rating
4/10
Earning Transparency
7/10
Franchise Attrition
4/10
Investment Accessibility
1/10
Summary of potential earnings
$1,814,000 / unit
Average Gross Profit During 2020Quick Service Restaurants (QSR)
$2,500,000 / unit
Average Revenue During 2020Quick Service Restaurants (QSR)
Franchise System Development
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Distribution of McDonald's Franchisee
Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $45,000 Maximum: $45,000
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $1,470,500 Maximum: $2,642,000
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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