There"s no question around it — McDonald"s is the many successful restaurant in the history of the world. The company isn"t precious millions, however billions — $148.45 billion to it is in exact, and also that number usually climbs up daily (via Macrotrends). Follow to McDonald"s website, their rapid food burgess joints are located on every continent in the people except Antarctica, and also the brand is constantly striving to evolve its menu.

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Ever due to the fact that Ray Kroc took the franchise concept and also applied it to McDonald"s, the brand has been cultivation like hotcakes and there are more McDonald"s franchises in north America than anywhere else in the human being (via Statista). While opened a McDonald"s is no for those with a light wallet, the payoff have the right to be nice good, and franchise owner — and also McDonald"s – are making bank with every restaurant. 


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According to Business Insider, the average McDonald"s restaurant takes in about $2.7 million a year in sales. That might not be rather as high together Chick-fil-A or Panera, yet it"s still pretty good. Since there are far more McDonald"s scattered across the world than one of two people Chick-fil-A or Panera, it"s simple to view why McDonald"s is such a well-off company.


Some McDonald"s franchise owner are naturally going to make more than others, however most franchise owners still pull in an approximated yearly profit of about $150,000 (via Fox Business). A benefit of $150,000 after $2.7 million in sales isn"t even 6 percent, however after food cost, supplies, crew payroll, and about a dozen other costs handed under by corporate, that"s what franchisees room left through (via Bloomberg).

Franchise owners can turn to McDonald"s corporate because that guidance, but getting the stamp of approval to open up one is the actual difficulty.


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Buying into a McDonald"s franchise isn"t cheap, and if prospective franchisees desire to obtain a piece of the Mickey D"s pie, they"ll have to carry some hefty coin come the table. According to Business Insider, the initial investment is between $1 million and also $2.2 million.


That price tag is nice broad, yet McDonald"s notes the these expenses are based on the restaurant"s location and also size. Also the landscaping components in. Lengthy story short, it"s going to cost a lot much more to to buy a McDonald"s franchise in mountain Francisco 보다 it is in Saginaw, Michigan.

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Oh, and also if you"re thinking around buying a franchise, save in mind that 40 percent of the initial investment should be cash or non-borrowed assets. Whether it"s McDonald"s, Wendy"s, or five Guys, quick food franchise owners do pretty fine — at least once they get past the initial investment hurdle.


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Opening a McDonald"s franchise is anything yet easy unless you have piles and also piles the money to burn. The said, McDonald"s would prefer to gain as plenty of franchise owners as possible. The franchise system has been immensely popular for the golden Arches and is actually just how they do a significant portion of your profit. That"s appropriate — McNuggets aren"t the actual building blocks the this billion-dollar company. 


So if McDonald"s franchise owners have the right to make a six-figure salary through their restaurant, McDonald"s is making also more. It all starts v the $45,000 franchise fee the franchisees pay. Then, there"s the never-ending monthly company fee that takes 4 percent of a location"s gross sales. After that, franchise owner pay a rental fee each month which works out to be an median of approximately 10.7 percent the sales. So basically, McDonald"s franchise owners are forking over 15 percent of their sales every month come the big golden Arches machine. 

And this mechanism is do bank for McDonald"s. So lot so that only around 5 percent of the McDonald"s places on the earth are company-owned (via Reader"s Digest). The remainder are franchise work that space paid because that upfront top top the organization owner"s own dime. McDonald"s merely keeps those McNuggets and also french fries stocked up while the cash rolfes in. 


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While it"s certainly apparent that McDonald"s renders a killing with the franchise system, this is actually out of need — at least for the worldwide growth the McDonald"s has actually achieved. According to Reader"s Digest (via The wall Street Journal), McDonald"s raked in 27.4 exchange rate in revenue in 2014, and how that breaks down is quite telling. As for that revenue, $9.2 billion of it was from franchised locations and $18.2 to be attributed to company-owned locations. ~ above the surface, it looks favor the company-owned places are the real money-makers, however that"s no the case. 


The price of running a business, especially a restaurant, have the right to really eat right into its profits. In ~ the end of the day, McDonald"s just keeps roughly 16 percent that the revenue that company-owned stores make, but it keeps 82 percent of the revenue franchisees pay the end to it. All the adds approximately mega-bucks for the company, and while franchise owners do make part coin, the service itself is that really wins.