How much does it cost to open a McDonald's?
Estimate the all-in cost to open a McDonald's franchise, from the initial franchise fee and the building and site development to the kitchen equipment, the seating and signage, the technology, the opening inventory, the grand-opening marketing and the working-capital cushion. See the total, a realistic range, and what each part adds.
Typical range $1,392,000 – $2,349,000
- Initial franchise fee$45,000
- Building & site development$900,000
- Kitchen & production equipment$350,000
- Seating, signage & decor$150,000
- Technology, kiosks & drive-thru$80,000
- Opening inventory$20,000
- Grand-opening marketing$15,000
- Working-capital buffer$180,000
- Total$1,740,000
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$1.5 million to $2.2 million all-in is a typical ground-up build with new drive-thru lanes, a full kitchen and a proper reserve. Finance the build and set up real payroll and a franchise-grade back office.
What this assumes, and where it could be wrong
Every one of these is a place the number could be off. They are here because you should be able to check our working, not because we are hedging.
THE FRANCHISE FEE IS NOT THE COST OF THE FRANCHISE, AND EVERY NUMBER HERE IS YOURS.
The building and site development is the line that separates a lower-cost build from a seven-figure one. A ground-up site with new drive-thru lanes, parking, utilities and landscaping costs far more than taking over an existing restaurant shell, so the site you sign for moves the total more than any other single choice.
The franchisor will expect a large sum in non-borrowed funds. Beyond the total on this page, franchise programs generally require the operator to bring a substantial amount of their own liquid cash rather than finance the whole build, so budget the reserve as money you already hold, not money you plan to borrow.
Ongoing fees sit outside this number. A franchise agreement usually carries a monthly service fee and an advertising contribution as a percent of sales, plus rent where the franchisor owns the site. Those are recurring costs, not part of the one-time opening total this page sums, so plan for them separately.
The working-capital cushion is what carries the first months. A new location runs payroll, rent and food cost before sales settle into a steady rhythm. The reserve here is sized from your own monthly operating cost, and running short of it is a common way a well-built location gets into trouble.