The Financials

An initial down payment of 40% of the total is required when you purchase a new restaurant or 25% of the total cost when you purchase an existing restaurant(s). The down payment must come from non-borrowed personal resources, which include cash on hand; securities, bonds, and debentures; and business or real estate equity, exclusive of your personal residence.

Business values for existing restaurants differ. As a result, the minimum amount for a down payment will vary. Generally, we require a minimum of $700,000 of non-borrowed (unencumbered) personal resources to be considered. Individuals with additional funds may be better prepared for multi-restaurant opportunities.

We require that you pay a minimum of 25% cash as a down payment toward the purchase of a restaurant. The remaining balance of the purchase price may be financed for a period of no more than seven years. While McDonald's does not offer financing, McDonald's franchisees can enjoy the benefits of our established relationships with many national lending institutions that offer competitive lending rates.

During the term of the franchise, fees paid to McDonald’s for each restaurant, include:

Royalty: 4%-5% of monthly gross sales

Rent: a monthly base rent and/or percentage rent that is a percentage of monthly gross sales.

License Fee: a one time fee of $45,000 is paid for 20-year term.