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2021 Franchise 500 Rank
#11 Ranked #3 last year
See the Full List
Initial investment
$1.3M - $2.3M
Units as of 2020
39,020 5.4% over 3 years

Company Overview

Ray Kroc, a milkshake mixer salesman, ventured to California in 1954 to visit McDonald's hamburger stand, where he heard they were running eight mixers at once. Kroc was impressed by how rapidly customers were served and, seeing an opportunity to sell many more milkshake machines, encouraged brothers Dick and Mac McDonald to open a chain of their restaurants. Kroc became their business partner and opened the first McDonald's in Des Plaines, Illinois in 1955. McDonald's and the Golden Arches have since become an internationally-recognized symbol of quick-service hamburgers, fries, chicken, breakfast items, salads and milkshakes.

About McDonald's

Industry
Food
Related Categories
Hamburgers
Founded
1955
Leadership
Chris Kempczinski, CEO
Ticker Symbol
MCD

Franchising Overview

Franchising Since
1955 (66 years)
# of employees at HQ
885
Where seeking

This company is seeking new franchisees throughout the US.

This company is seeking new franchisees worldwide.

# of Units
39,020 (as of 2020)

Franchisor Information

Corporate Address
110 N. Carpenter
Chicago, IL 60607

Information for Franchisees

Here’s what you need to know if you’re interested in opening a McDonald's franchise.

Financial Requirements & Ongoing Fees

Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee
$45,000
Initial Investment
$1,314,500 - $2,306,500
Cash Requirement
$500,000
Royalty Fee
4%
Ad Royalty Fee
4%+
Term of Agreement
20 years
Is franchise term renewable?
Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing
McDonald's has relationships with third-party sources which offer financing to cover the following: equipment

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training
500 hours (average)
Classroom Training
72 hours
Additional Training
At local McDonald's restaurant
Ongoing Support
Purchasing Co-ops
Newsletter
Meetings & Conventions
Toll-Free Line
Grand Opening
Online Support
Security & Safety Procedures
Lease Negotiation
Field Operations
Site Selection
Proprietary Software
Marketing Support
Co-op Advertising
Ad Templates
National Media
Regional Advertising
Marketing Planning & Support
Social Media
SEO
Website Development
Email Marketing
Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?
No
Can this franchise be run from home/mobile unit?
No
Can this franchise be run part time?
No
Are exclusive territories available?
No

Franchise 500 Ranking History

Compare where McDonald's landed on this year’s Franchise 500 Ranking versus previous years.

Additional Rankings

Curious to know where McDonald's ranked on other franchise lists? Find out below.

Ranked #11

Franchise 500 Ranking

Ranked #5

Fastest-Growing Franchises

Ranked #1

Top Global Franchises

Ranked #1 in Hamburgers

Top Food Franchises

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Disclaimer
The information on this page is not intended as an endorsement or recommendation of any particular franchise by Entrepreneur Media. Our franchise listings and rankings are solely research tools you can use to compare franchise operations. Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise. That should include reviewing the franchisor's legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees.
Updated: February 8th, 2021