How much does it cost to open a McDonald’s restaurant in 2024?

McDonald’s is having a rough start to 2024. Amidst a widespread boycott in important developing Asian markets, the company missed growth expectations in the final quarter of 2024 by five percentage points; growth was a meagre 0.7%.

The ongoing boycott has been organised in response to McDonald’s conduct in the Israeli war on Gaza. The Israeli-based franchises announced they would be giving away free meals to members of the Israeli army, an armed forces that is plausibly committing genocide according to the International Court of Justice.

“So long as this war is going on... we’re not expecting to see any significant improvement [in these markets],” the McDonald’s boss said.

The company argued that it was not at fault for the actions of the franchise owners, despite them operating under the McDonald’s brand. This franchise system is a structured arrangement where independent entrepreneurs, known as franchisees, operate their own McDonald’s restaurants using the McDonald’s brand, system, and support.

With that in mind it might not be the best time to invest in your own McDonald’s franchise.

Setting up your own McDonald’s restauarant

McDonald’s requires franchisees to have a certain amount of liquid assets and net worth to ensure they can handle the financial responsibilities of operating a restaurant. The McDonald’s website has published a list of all the necessary cost information.

The company charges a one-time franchise fee, which grants you the right to operate a McDonald’s restaurant. This fee is $45,000 though the company notes an initial investment of between $464,500 and $2,306,500 is also necessary.

After the initial costs, the company also requires the franchise owner to have $500,000 in liquid cash while also paying McDonald’s 4% in royalties.