McDonald’s might have some of the cheapest menu offerings around, but big bucks are required to set up shop with the iconic fast food chain.
The average McDonald’s restaurant is a serious money-maker, generating nearly $2.7 million in annual sales. Behind Chick-fil-A, Whataburger, and Panera Bread, McDonald’s is the fourth-highest-grossing chain in the US by sales per unit, according to QSR magazine.
All told, including the initial $45,000 franchise fee, the total investment necessary to begin operation of a McDonald’s franchise ranges from $1 million to upwards $2 million in construction and startup costs. According to McDonald’s, the total is determined by the geography and size of the restaurant, as well as by equipment, signage, style of decor, and landscaping.
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After you’re up and running, franchisees are required to pay an ongoing monthly service fee equal to 4% of gross sales. Franchisees must also pay rent to the company, which, for the average location, equals approximately 10% of sales.
That’s a whole lot of McNuggets!