Here’s what a McDonald’s franchisee earns per month and what the franchise takes in

When you think of fast food and burgers, two major companies immediately spring to mind: McDonald’s and Burger King. McDonald’s was founded in 1940 by the McDonald brothers, Dick and Mac. However, it wasn’t until 1954 that the foundation for today’s McDonald’s was laid. At that time, executive Ray Kroc discovered a small restaurant in California on Route 66.

After unsuccessfully trying to take control of the company, Kroc became responsible for one of the first franchises. Now, with a presence in over 100 countries and more than 38,000 locations, McDonald’s is one of the largest fast-food chains. In the US, they have 13,598 restaurants, with plans to add more in the coming years.

McDonald’s restaurants and their franchisees

Approximately 93% Of McDonald’s restaurants worldwide are owned and operated by independent local business owners, according to data on McDonald’s website. The process of opening a franchise is supported by the company, which selects and evaluates locations based on business opportunity and profitability criteria.

“McDonald’s handles property acquisition and makes all necessary investments to adapt the space to brand standards,” the company explains. The company seeks individuals who are capable of operating multiple locations. Candidates who have successfully operated multiple businesses may be suited to operating several McDonald’s franchises.

And also, the company requires a minimum of $500,000 of non-borrowed personal resources as a down payment for anyone to be considered for a franchise.

At this point, one might wonder if it’s really worth becoming a franchisee of this fast-food giant. It also begs the question: how much does a McDonald’s franchisee earn?

The cost of becoming an McDonald’s franchisee

According to franchise expert Borja España, “McDonald’s is one of the franchises with the lowest profit margins. The profit percentage for branches is between 10% and 15%. In the franchise world, that’s not a percentage to say ‘Wow!’. But of course, if you make three million euros (which a McDonald’s does, he assures), then yes,” he reasons.

Borja also highlights the rental cost of the location, “which is not cheap”. As he explains, the company owns the location and rents it to franchisees. “The effort rate is around 15%” (the portion of periodic savings allocated to rent).

Finally, he asserts that “McDonald’s benefits more from having you as a franchisee than you do from being a McDonald’s franchisee. But honestly, I find it logical and acceptable because what they offer is only provided by three or four brands worldwide, and it’s worthy of recognition.”

Ultimately, profitability will depend on several factors including operating and occupancy costs, financing terms but most importantly, the ability to operate the business effectively.

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