It costs a lot of money to open a McDonald's restaurant.
Franchisees must also pay rent to the company, which is a percentage of monthly sales.The average McDonald's restaurant generates nearly $2.7 million in annual sales, making it the fourth-highest-grossing chain in the US by sales per unit behind Chick-fil-A, Whataburger, and Panera Bread, according to
But to open a single restaurant, the company requires that potential franchisees have liquid assets of at least $500,000. Startup costs, which include construction and equipment expenses, average between $1 million and $2.2 million, according to . The total is determined by the geography and size of the restaurant, as well as by the selection of kitchen equipment, signage, style of decor, and landscaping, the company says.Franchisees must pay 40% of the startup costs with cash and other non-borrowed resources, while the rest can be financed.
In addition to those costs, McDonald's charges a $45,000 franchisee fee and an ongoing monthly service fee equal to 4% of gross sales. Franchisees must also pay rent to the company, which is a percentage of monthly sales.
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