If Dick and Mac McDonald had made it in the movies, as they’d once hoped, we might never have gotten the McDonald’s we know today: the largest burger franchise in the world, with more than 45,000 restaurants across 114 countries. The brand’s global footprint keeps growing, but with a traditional franchise now running well past $1.4 million to open, the real question for prospective owners hasn’t changed: is a McDonald’s franchise still worth the investment in 2026?
The McDonald’s Franchise Story
Dick and Mac McDonald opened their first burger drive-in in California selling 15-cent hamburgers, but it was Ray Kroc’s vision that turned it into a global phenomenon. Kroc, who’d sold the brothers a milkshake mixer years earlier, became their franchise agent in 1954 and bought the rights to the McDonald’s system outright in 1961 for $2.7 million. He pushed the brand into Canada and Puerto Rico in 1967, and though he died in 1984, the international expansion never slowed. McDonald’s now operates in more countries than almost any other restaurant brand on earth.
Related: See the This Year’s Top Food Franchises
How Much Does It Cost to Open a McDonald’s Franchise?
McDonald’s restaurants in the U.S. are almost entirely franchised. As of 2025, about 95% of U.S. locations were independently owned, with the rest run by McOpCo, the company’s own operating arm.
Per the most recent Franchise Disclosure Document (FDD), the total investment to open a traditional McDonald’s franchise ranges from $1,472,000 to $2,807,000.
That includes an initial franchise fee of $45,000, reduced to $22,500 for certain smaller-format locations.
- A franchise agreement authorizes you to run a McDonald’s at one specific location for a term of up to 20 years.
- McDonald’s also offers lower-cost formats, including Satellite locations inside retail stores such as Walmart, airports, and smaller-footprint restaurants in gas stations/convenience stores, each priced well below the traditional range. (You can find numbers for the estimated initial investment for these alternative location formats in Item 7 of the FDD.)
Beyond the upfront investment, franchisees owe:
- 4% or 5% monthly royalty fee on gross sales, depending on the circumstances
- Rent (McDonald’s typically owns or controls the real estate)
- A minimum 4% of gross sales annually into the national advertising fund
- Technology and back-office support fees
What You Can Expect to Make as a McDonald’s Franchisee
According to the most recent Item 19 disclosure, covering roughly 12,500+ domestic traditional franchised restaurants open at least one year:
- Average annual sales volume was $4,057,000, with a median of $3,887,000.
- About 81% of locations topped $3 million in sales, and 67% topped $3.4 million.
- The highest-performing U.S. location generated roughly $20.4 million; the lowest generated just over $1 million.
Is McDonald’s Still Growing?
Yes, and faster than it has in years. McDonald’s added 45,356 restaurants worldwide by the end of 2025, up nearly 1,900 units year over year. In the U.S. specifically, the franchised store count grew by 175 units in 2025 alone, the fastest pace of franchise growth McDonald’s has posted in years, while company-owned locations continued to shrink. McDonald’s has publicly stated a goal of reaching 50,000 restaurants globally by the end of 2027.
Much of that growth is being driven by technology. McDonald’s is testing AI-powered voice ordering at the drive-thru, rolling out its “Ready on Arrival” geofencing system so kitchens can start mobile orders before customers pull in, and aiming to grow its loyalty program from roughly 150 million to 250 million active users. The brand has also committed to a “Best Burger” consistency initiative meant to standardize quality across nearly every market by the end of this year.
How McDonalds Stacks Up to the Competition
McDonald’s continues to take the biggest bite out of all of the burger franchises, reporting over $139 billion in global systemwide sales last year, far outpacing its nearest competitors, Wendy’s and Burger King. McDonald’s compares similarly to the competition in terms of initial investment and royalty.
| Franchise | Franchise Fee | Initial Investment | Royalty |
| McDonald’s | $45K | $1.47M–$2.73M | 4% gross sales |
| Burger King | $50K | $580K–$4.7M | 4.5% of gross sales |
| Wendy’s | $50k | $1.52M–$2.99M | 4% of gross sales |
| Five Guys | $25K | $978K–$1.38M | 6% of gross sales |
| Culver’s | $15K – $55K | $2.25M–$7.2M | 4% of gross revenue |
Related: See the This Year’s Top Food Franchises
What’s Hard to Swallow
The barriers to entry haven’t changed much since 2019, and in some ways they’ve gotten steeper.
- Limited site selection. McDonald’s, not the franchisee, chooses and develops new locations. Site selection is handled entirely separately from franchisee selection: McDonald’s evaluates the location, acquires the property, and builds the restaurant before awarding it to the most qualified candidate.
- No exclusive territory. McDonald’s doesn’t franchise territories and won’t work with candidates who want a specific location or a limited geographic area.
- Significant capital required upfront. McDonald’s typically requires candidates to have at least $750,000 in net, non-borrowed personal funds, plus a recommended $100,000 per restaurant in working capital and $75,000 for relocation costs. A higher bar applies if you’re aiming to own multiple units or restaurants in certain markets.
- A long ramp-up. Training runs six to 12 months before you can operate independently. It can be completed part-time.
- No partnerships. McDonald’s doesn’t allow franchise partnerships, including sibling partnerships. Family members may be employed in the business, but can’t co-own it.
Other Tasty Options
A McDonald’s franchise is just one of many lucrative restaurant franchising opportunities. Before making your final decision, consider looking at some of these award-winning alternatives from our Top Franchises list to see which franchise would be the best fit for you.
Culver’s
Home of the ButterBurger and Wisconsin’s own frozen custard, Culver’s has grown from a single Prairie du Sac drive-in in 1984 into one of the strongest-performing brands in the entire burger segment. Average unit volume now tops $4.1 million, among the highest of any QSR brand in the country.
- Cash required: $500,000 ($750,000 if you’ll own the real estate)
- Net worth: $1,250,000
- Initial investment: 2,254,000 – $7,228,000
Learn more about owning a Culver’s franchise.
Wayback Burgers
Founded in Newark, Delaware in 1991 and franchising since 2008, Wayback Burgers has built its name on cooked-to-order burgers and hand-dipped milkshakes, all served in a retro-style setting. The brand has grown to roughly 180 locations across more than 35 states and 20 countries, and it has one of the more accessible entry points in this category.
- Cash required: $200,000
- Net worth: $500,000
- Initial investment: $209,000 – $633,000
Learn more about owning a Wayback Burgers franchise.
East Coast Wings + Grill
This wing concept has been serving up more than 50 flavors and seven heat levels to create over 420 combinations of Buffalo-style wings. Alongside its customizable wing menu, this full-service restaurant model offers a full line-up of gourmet burgers. With a loyal following primarily across the southeastern U.S., East Coast Wings + Grill is strategically expanding across the Southeast, South, and Midwest.
- Cash required: $200,000
- Net worth: $600,000
- Initial investment: $408,368 – $1,232,845
Learn more about owning an East Coast Wings + Grill franchise.
Sonny’s BBQ
If you’re into BBQ and not just burgers, Sonny’s might be an attractive option. A full-service concept, Sonny’s offers a family-friendly dine-in format that originally opened in Gainesville, Florida. Smoking meat since 1968, Sonny’s BBQ has grown to more than 90 locations across the South.
- Cash required: $500,000
- Net worth: $1,000,000
- Initial investment: $831,500 – $1,447,000
Learn more about owning a Sonny’s BBQ franchise.
Ready to Sink Your Teeth Into the Burger Business?
Breaking in as a first-time McDonald’s franchisee is harder than ever, both because of how the site-development process works and because the capital required has climbed well past $2.7 million on the high end. That doesn’t mean the burger business is off the table. Whether you’re drawn to McDonald’s brand power or a lower-cost alternative, the fundamentals still apply: understand the full investment (not just the sticker price), talk to current franchisees, and make sure the numbers work for your market before you sign.
See the full list of 2026’s Top Franchises
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