How much is a McDonald's franchise? $1,470,500 – $2,642,000 to open, per its disclosure filings
$1,470,500 – $2,642,000
Opening a McDonald's franchise takes $1,470,500 – $2,642,000 all-in, per its franchise disclosure filings (data as of 2026-05). The initial franchise fee is $45,000. Ongoing, franchisees pay a royalty of 4% on sales plus an ad-fund contribution of 4%. To qualify, McDonald's asks for $500,000 in liquid cash. Anything the filings do not state is marked "Not disclosed" below — never estimated.
McDonald's cost table
| Verification mark | Cost item | Low | High | Range |
|---|---|---|---|---|
| Initial franchise feeOne-time, paid to the franchisor at signing | $45,000 | $45,000 | $45,000 | |
| Initial investment (all-in)FDD Item 7-derived range: build-out, equipment, opening costs | $1,470,500 | $2,642,000 | $1,470,500 to $2,642,000 | |
| Net worth requiredFranchisor's stated qualification minimum | Not disclosed1 | Not disclosed1 | ||
| Liquid cash requiredFranchisor's stated qualification minimum | $500,000 | $500,000 | $500,000 | |
| Cash to open (all-in range) | $1,470,500 | $2,642,000 | $1,470,500 to $2,642,000 | |
- 1 "Not disclosed" means McDonald's's filings do not state this figure. We publish the gap instead of estimating it.
| RoyaltyOngoing, % of sales | 4% |
|---|---|
| Ad fundOngoing, % of sales | 4% |
| Initial termLength of the first franchise agreement | 20 years |
What's in that number — and what isn't
The $1,470,500 – $2,642,000 range is derived from McDonald's's filed initial-investment disclosure (FDD Item 7 class): build-out, equipment, and opening costs as the franchisor stated them. Your market's real estate, labor, and build-out prices can land you outside it.
Not in the opening number: the ongoing royalty of 4% on sales, the ad-fund contribution of 4%, and your operating losses while the unit ramps. Every figure marked "Not disclosed" above is a gap in the filings, not a zero.
How McDonald's's cost compares
A dollar figure means more with a yardstick. Here is where McDonald's's disclosed cost sits against the Food & Beverage category:
- Minimum startup cost of $1,470,500 — about 5.2× the Food & Beverage median of $282,500.
- Initial franchise fee of $45,000 — about 1.3× the Food & Beverage median of $35,000.
Category medians are computed from the Food & Beverage brands in our data that disclosed each figure — a benchmark for scale, not a quality judgment. See all Food & Beverage franchises
What about earnings?
We don't publish per-brand earnings figures — for McDonald's or anyone else. The only primary source is Item 19 of the brand's own franchise disclosure document (FDD), and no law requires a franchisor to publish one, so the "average owner income" numbers circulating elsewhere are usually unsourced or survivorship-biased. Ask McDonald's for its current FDD and read Item 19 yourself — and if there is no Item 19, that silence is information too.
What is the McDonald's franchise fee?
$45,000, one-time, per disclosure filings as of 2026-05.
What ongoing fees does McDonald's charge?
A royalty of 4% on sales plus an ad-fund contribution of 4%, per disclosure filings as of 2026-05.
How much money do you need to qualify for a McDonald's franchise?
McDonald's's filings ask for $500,000 in liquid cash (as of 2026-05). Capital figures are the franchisor's stated minimums, not our advice.