Obtaining A McDONALDS FRANCHISE: INVESTMENT Cost, ANNUAL SALES AND Economic Outcomes – Obtaining THE McDONALDS FDD
Monday, December 26th, 2011
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Not surprisingly, before considering anything else many would-be franchise owners ask themselves: How much does a McDonalds franchise cost and how can I buy a McDonalds franchise? While it’s true McDonalds charges a $45,000 franchise fee, this is only the initial franchise fee for licensing rights – the upfront fee charged to join the network. There’s a LOT more financial commitment and cost involved to buy a McDonalds franchise after that.
Different McDonalds Franchise Ownership OptionsAccording to McDonalds, there are two ways to buy a McDonalds franchise and enter their system. The first, and most frequently used method is purchasing an existing restaurant, either one operated directly by McDonalds or from a McDonalds franchise owner/operator.
Buying A New McDonalds FranchiseFor franchise licensing rights to a new McDonalds, the company charges its standard $45,000 initial franchise fee, except if the franhise is for a McDonalds in a gas station or convenience store, the fee is rduced to $22,500.
Buying An Existing McDonalds FranchiseWhat about the most frequently used way to buy a McDonalds franchise – purchasing an existing restaurant from a current McDonalds franchise owner or one that’s company-owned by McDonalds and sold as a “turnkey franchise”?
The McDonalds Franchise – Item 19 Financial Performance RepresentationsAccording to the McDonalds FDD Item 19, the average annual sales volume of traditional restaurants in the U.S. open at least one year as of 12-31-09 was $2,37 million in 2009. The lowest performing McDonalds clocked in at $387,000.
Unlike other franchise companies with similar investment levels, McDonalds steps up to the plate and provides franchise earnings information in Item 19 of its FDD.

