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How Much Mcdonald's Franchise Owners Really Make Per Year
There's no question about it, McDonald's is the most successful restaurant in the history of the world. The company isn't worth millions, but billions, nearly $150 billion, and that number keeps climbing every day.
Back in the 1950s, the man who would eventually turn McDonalds into an international powerhouse, Ray Kroc, had a lot of big ideas for the restaurant. But perhaps his biggest idea can be summed up in a single word.
"Franchise, franchise, franchise, franchise, franchise."
The food at McDonald's has always sold like hotcakes but once the restaurant started franchising, the world began eating up the brand. So, it's not surprising that for decades, entrepreneurs have been flocking to the Golden Arches with dreams of opening their own McDonald's. But being a franchise owner isn't as easy, or profitable, as you might think.
For starters, buying into a McDonald's franchise is expensive, and if prospective franchisees want to get a piece of the pie, they'll have to bring some heavy coin to the table. According to Business Insider, the initial investment is between $1 million and $2.2 million.
That price tag is pretty broad, but McDonald's notes that these costs are based on the restaurant's location and size. Long story short, it's going to cost a lot more to buy a McDonald's franchise in San Francisco than it is in Saginaw, Michigan.
Before you take the plunge with Mickey D's and start your own franchise, keep in mind that 40 percent of that initial investment must be cash or non-borrowed assets. Whether it's McDonald's or other fast food restaurants, franchise owners can do pretty well, at least, once they get past their initial investment hurdle.
150000 USD a year
6% a year
