McDonald's Franchise Financing

Complete financing guide for McDonald's franchises. Calculate loan payments, understand investment requirements, and get connected with specialized lenders.

$1.3M - $2.3M
Total Investment
$750K
Liquid Capital
$2.9M
Avg Revenue
40,000+
Locations

McDonald's Franchise Loan Calculator

McDonald's Franchise Loan Calculator

Range: $1,300,000 - $2,300,000

25% of total investment

SBA rates typically 6.5% - 9.5%

Average: $2,900,000

Typically 80-90% of revenue

Loan Summary

Amount Financed:$975,000
Down Payment:$325,000

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McDonald's Franchise Cost Breakdown

Investment Range

$1,300,000 - $2,300,000

Locations

40,000+

Avg Revenue

$2,900,000

Founded

1955

Investment Breakdown

Franchise Fee

One-time fee paid to franchisor

$45,000
3% of total

Equipment & Fixtures

Kitchen equipment, POS systems, furniture

$780,000
60% of total

Leasehold Improvements

Build-out, renovation, signage

$325,000
25% of total

Working Capital

Initial inventory, payroll, marketing

$130,000
10% of total

Other Costs

Training, permits, insurance

$65,000
5% of total

Financial Requirements

Liquid Capital

$750,000

Cash and easily convertible assets

Net Worth

$1,500,000

Total assets minus liabilities

Experience

Business or management experience preferred

SBA Financing

Down Payment:10-15%
Interest Rate:6.5% - 9.5%
Term:10-25 years
Max Amount:$5,000,000

Conventional Financing

Down Payment:25-40%
Interest Rate:7% - 12%
Term:5-15 years
Processing:Faster approval

Investment Analysis

22%
Annual ROI
4.5 years
Payback Period
10%
Profit Margin

McDonald's Franchise Financing Options

SBA 7(a) Loans

  • • Up to $5M loan amount
  • • 10% down payment (vs 25-40% conventional)
  • • 10-25 year terms
  • • Rates: Prime + 2.75% - 4.75%
  • • McDonald's is SBA-approved franchise

Conventional Bank Loans

  • • 25-40% down payment required
  • • 5-15 year terms typical
  • • Rates: 7-12% depending on credit
  • • Faster approval than SBA
  • • Personal guarantees required

McDonald's Franchise Financial Requirements

Minimum Qualifications:

  • • $750,000 liquid capital
  • • $1,500,000 net worth
  • • Credit score 680+
  • • Business/management experience

Investment Breakdown:

  • • Franchise fee: $45,000
  • • Equipment: $1,000,000 - $1,600,000
  • • Real estate/leasehold: $200,000 - $600,000
  • • Working capital: $100,000 - $200,000

McDonald's Franchise Financing FAQ

How much does it cost to open a McDonald's franchise?

The total investment for a McDonald's franchise ranges from $1.3M to $2.3M. This includes the $45,000 franchise fee, equipment ($1M-$1.6M), real estate improvements ($200K-$600K), and working capital ($100K-$200K). The exact amount depends on location, size, and local costs.

Can I get an SBA loan for a McDonald's franchise?

Yes! McDonald's is on the SBA's approved franchise list. SBA 7(a) loans can finance up to 90% of the project cost (10% down payment) with terms up to 25 years. This is often the best financing option due to lower down payment requirements and longer terms.

What credit score do I need for McDonald's franchise financing?

Most lenders require a minimum credit score of 680 for McDonald's franchise financing. Scores above 720 will qualify for the best rates. McDonald's itself requires good credit as part of their franchise approval process.

How profitable is a McDonald's franchise?

According to McDonald's FDD, the average gross revenue is $2.9M annually. After expenses, the average net income is approximately $290,000 (10% profit margin). However, profitability varies significantly by location, with top performers earning $500K+ annually.

How long does McDonald's franchise financing take?

SBA loans typically take 45-90 days for approval. Conventional bank loans can be faster at 30-45 days. The McDonald's franchise approval process itself takes 6-9 months, so it's important to start the financing process early in your franchise application.

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