Do you think owning a McDonald's franchise would be worth it?

I was setting in my car eating a McDonald's hamburger in their lot. I noticed how many people were using the drive up and those who went inside. This was about thirty years ago and a light went off in my head. Buy McDonalds stock. That's what I did and I am happy with the way the stock has preformed.

That’s why you should own a “McDowells”. Instead. Keep 100% of your sales!

My dad's good friend has 5-10 of these franchises, inherited from his father, and he gave one to each of his two kids. They tell people they work at McDonalds and just leave it at that lol.

Many many moons ago I worked for a guy who opened up a McDonald's express, it cost him a total of $250,000 just to buy in even before spending other money just to get it off the ground. Years later, he owns quite a few locations in the New York tri-state area and became a billionaire, his name is Paul Hendel, A very nice man Who gave me a chance to make some money after school when I was very young, had I stuck with him, perhaps I could have been rich too, he rewards loyalty

I was in a positon where I knew a lot of Mc Donald's franchise owners. They drove nice ferrai , Porsche and other expensive cars. You do not have to feel pity for the franchise owners.

My friends dad owned three McDonalds for quite a number of years( he is now retired) and believe me he made way more than 150k for each store and these are smaller market stores.

McD’s is the largest real estate holder by far in restaurant business.

Franchising isn't for everyone. Anyone who wants a life and true ownership starts his/her own business. Don't waste time with franchises, they are worse than being employed. If you really have the cash just invest it sensibly. You'll do far better with much less effort.

Every franchise owner I know owns more then one franchise. You don’t go in just to run one. Anyway all of them are multimillionaires now.... actually they were all multimillionaires prior... well at least their families were. And they don’t hang out at the stores either..... hell they don’t even know any employee names.

There's only ever ONE winner in modern day franchise operations and that's the franchisor.

McDonalds normally gives you two choices on locations, your hometown or another location where there's an opening. I worked for a 2nd generation owner in the 90's, he did well by owning 5 stores. Most of the marketing in most areas are voted by a group of owners, specials, pricing etc. Some areas prices are higher or lower than others, depending where the store is located. Every 6 to 10 years the licensee must upgrade their stores, new equipment or full remodel. Some owners with multiple stores can afford it , while a one location cannot do one right away. The owner I worked for recently sold his stores to his son.

I love how the stock footage that you used in the video shows McDonald's employees super happy flipping burgers and customers dancing

Most franchises make between 100-150K for the owners, take into account that the owner is often the Manager and only needs to work 2-3 hours a day at one franchise and collect the wage for that position, it's a great job.

So you don’t own a McDonald’s franchise. You’re actually a well paid McDonald’s employee.

You're paying $2 million to be a manager at McDonald's.

They should take some of their "BILLIONS", and invent an ICE CREAM MACHINE that actually WORKS.

I worked Summers at McDonald's in the 80's when I was in High School. Even then, I knew buying a franchise was a horrible idea if you couldn't afford to have at least 5 or 6 stores. Some things not mentioned in the video... Franchisee's are obviously required to purchase all of their food and supplies from McDonald's. Often, the prices they pay are over market value. The owner of the store I worked at often complained that he could buy beef and produce cheaper elsewhere but was required to buy from McDonald's. McDonald's also runs promotions that often require franchisee's to sell food at a loss. That "two sausage egg McMuffins for $4" promotion is a money loser. The intention is to drive people into the stores with the hope they'll order highly profitable soft drinks as well. If you don't, the just lost money. Franchisee's actually brought a class-action suit against McDonald's over this. One more thing not mentioned is that McDonald's requires prospective franchisee's to have worked as a manager in a McDonald's for 2 years. You also have to attend classes at "Hamburger University" in Florida. They may have changed that policy, but that's what was required when I looked into it.

150k a year is very good. The owner barely has to do anything other then to manage some things. Plus that’s a pretty good cap rate of about 8-12%

"It's like they don't care if you make money, as long as they make money" - The Simpsons

McDonald's basically pays the owner a mid range salary to help drive 2 million in profit for themselves. Brilliant business model.

Not worth the headache and everything that goes behind running a franchise.

It almost sounds like a pyramid scheme. Those who got in early, get all the benefits. Those who didn't, get peanuts.

It amazes me how many here post comments about how they know of someone who owns a franchise and do little work to rake in big profits. The truth of the matter is quite different. In the over-whelming cases, owners have to be thoroughly involved with the business if they hope to have a chance of seeing it run smoothly. Hiring a management team is great in theory, but unless you as owner become involved in the day to day workings of the business, you may be cooking up a recipe for disaster. Mismanagement and outright theft could torpedo the business in very short order. No type of business is immune. If you’re not willing to give it the time and effort, look elsewhere to invest your money.

It's like Uber...They take about 35% of the Driver's Profit. SMH

That makes sense, pay 1million first to McD's then after all the fees you pay for the year your gross profit maybe 150k, you can get that kind a money working a good job....

I’d rather buy McDonald’s stock & take my chances with that.

Wow! It's enlightening to hear all these experts who have never owned a franchise claim they know how it goes.

That's a low-end number. Most McDonald's franchises net about 10% of gross sales, which is really closer to $250,000 a year. I know a McDonald's franchise owner and between his two restaurants he nets about $700,000 a year. I know another franchise owner who owns a dozen McDonald's in the New York metro area and she is incredibly wealthy.

I want to own some McDonalds Frenchfries oh and a few dipping sauce too.

Not sure where the numbers came from, but the average McDonald’s nets WAY over $150K. Additionally, owners also draw a salary from each store they own, usually around $200-$250K annually. So, $250K salary plus another likely $200-$400K net starts looking quite attractive. And then of course, the Mercedes that they drive is leased to their corporation and the vacation they take is “business” which are just a few perks-all adding up to a rather nice investment.

McDonalds can’t beat our local restaurants in Mt.Airy, NC. They are O’dells Sandwich Shop and The Dairy Center. These two places have been in continuous business since the mid 1950s. I used to work at the Dairy Center, great bosses, great food, great town. Oh, great vlog, thanks for sharing. Oh, both places have curb services!

Glad I bought stock, my wife loves that place.

I wouldn't bother. If you have that amount of upfront money, their must be better ways to make more.

3:57 is a clip from Netflix’s Money Heist. Haha what are these clips from

Another day, another great video. Good job mcdonalds. Keep growing!

4:10 looks like Ronald went to Subway for lunch

The cartoon character at the end has the demented thinking of a Union “man”.

I was waiting for the scene in Scarface where they ran the cash through the counter and tony says it’s not right , count it again

A nice presentation on marketing has been made. I like this video very much

The couple people I know who own a McDonalds franchise each owns several of them so do very well

13 years to break even at a 2million start up.. no thank you.

I'll take Hungry Jacks any day of the week.

Very good project thanks for sharing

This is like Casino (1995) but set in a Fast Food Joint

The franchisee that opened several stores over the years starting in '78 in our Canadian town of 100,000 claimed to had made just over a million dollars a year.....THOSE were the years to own a franchise!

So it’s a McMafia that kicks up to a clown.

I love how they use a subway ad lol

“They don’t care if you make money as long as they make money” Sounds like UBER & LYFT 👎🏽 👎🏽👎🏽👎🏽👎🏽

What a pain in the a$z for net of 150k. Managing the no shows, high turnover, messy, long hrs.. Toooo much responsibility for a paltry share. 🤣

I don't know...I don't even like McDonald. A burger is too expensive, I prefer eating a pizza instead

great video!

wow, its really very good information about Mcdonald's Franchise Owners

Who else heard « french eyes » ?

McDonald’s runs the company like the Italian mafia.

The way he said filet 😭🤣

More than 30 years ago, my uncle came to visit us chatting with my parents.... yada yada yada blah blah blah.... Then the conversation went to one of the stores near him - a mcdonalds franchise. he was bashing it why the neighbor spent more than $200K for the franchise and he is immediately at a huge loss not gonna make money.... some six months later he came to visit again and was amazed how that franchise earned all that money back and is already in the black in just 3-4 months of operation!!!! BTW. it was THE prime commercial area of the city!

Billionaire franchise! Hesitant to give employees an raise!

Warning: Don't watch this if you're really hungry. Like its after lunch and you haven't eaten anything yet all day.

The corporation ought to give employees team awards like we had at AT&T. there are a lot of benefits they could provide to their employees.

It might be a 6% profit margin but it is nearly guranteed money. There is less risk in owning a McDonald's franchise than investing in the stock market.

Better to open your own special burger joint with really delicious food.

More than it's worth that's for sure..

this was really interesting to me, but now I want a BigMac

My friend owns 4 McDonald's ....she has owned them for over 15 years...she is a millionaire and has a big home with a $1000 a month electric bill.....

I don’t know where you got the figure but my local Maccas, according to the owner, said his profit per week was $80K and yes that was after expenses.

For those wondering, every company as a different price to open a franchise. McDonalds in particular is so expensive because 1. There's so many 2. Sales volume is just about guaranteed to he high 3. If it was cheap, every asshole with a wallet to burn would try to open a franchise and devalue the chain in the process because there's too many in the wild Those thinking it's a bad investment, not really. Though, it clearly wouldnt be the smartest idea to have a mcdonalds be your first business venture. Personally, I would recommend buying residential real estate or partnering with another company. At the end of the day, buying a mcdonalds isn't the worst investment. Not even close

also, in terms of location. at least 2 to 3 lanes as your aproaching, and on the bottom of a trough if its a hilly area. also ask the council if they can put in traffic lights or a u-turn.

The restaurant I work at is part of 13 other restaurants owned by a franchise. The franchise made 36 million in sales last year, 13m got eaten in franchise fees, and the rest on costs and admin, leaving a 1.2m profit after tax.

I work there. Don’t ever work there.

"Ladies and gentlemen, I'm not in the hamburger business. My business is real estate." --Ray Kroc Quite simple: the company owns the land on which each franchise is paid, and collects rent and various fees so overall a franchisee will finish with 6-7% of gross sales--I reckon 6% given the rising cost of labor. One of my buddies owns six Taco Bell franchises in Mississippi. Two of them he does not own the land; he gets about 7% of gross sales in those stores, but those are very busy stores given their prime locations. The remaining four he owns the land, and those stores get him 14% of gross sales. He and his family are living very, very well.

Without watching this, i would guess the real estate and the products they make you buy from them, and franchise fees.

They can't be doing too bad, everywhere I go even over seas a Mc Donald's is easy to find

1:53 the guy goes for an interview at mcdonalds dressed in a suit.. lol Soon enough he will be over-worked and underpaid!

Leverage that 1m to buy 4 apartment buildings, duplex’s for 1m each, 20% down. In the short term you might make 60-80k net a year, long term as principle gets paid down you could be making 345k a year after they’re paid off. 6 units x 1200 a year in rents. Or what ever, invest in McDonald’s... :).

0:11 is the Mcdonalds I work at I’m pretty sure. Same building in the back. Drive Thru config.

I knew a old guy who owned 350 burger kings. His managers took care of business while he lived in a yacht in the Caribbean.

@4:07 Ronald sporting a Subway cup...

Nice vid love your content

verry verry nice video. thanks video.

If I'm not mistaken, at least in my home country (Spain), you can't apply for a franchise UNLESS you already own one, so usually McDonald's owners have more than one restaurant, making much more than 150k per year.

Mx Donald’s is so valuable because they have the biggest real estate portfolio in the world.

150k net profit?.. I'm good...I'd rather save that money and invest somewhere else.

That is a very bad net profit. I was in the quick print business independent not franchise. After 6 years, our bottom line net was $540,000 taxable income. Cost for me to open was about $40K over a 5 year period. A small business should make a minimum of 20% net to the owner for the risk of ownership....minimum. If you invested $1 million you would get around 10-11% a year in the stock market long term. Better than a McDonalds because you do not have the responsibility of a burger shop owner. If you have multiple burger shops, instead have several $$ million in the market at 10-11% each year. Some people think it's cool to own a business, but it's cooler to make a million every 2 years in a non-franchise behemoth IMO.

Great to knowing this. love mcdonald's

It ALLL DEPENDS ON LOCATION. The McDonald’s over here Calabasas, CA makes a lot more than those in Texas, Kansas, or Missouri. It’s common fucking sense

If I had that amount of money spare to invest in Macdonalds I would not buy a franchise. You would probably make more buying shares in the company instead.

4:10 i was like WHY TF RONALD HOLDS A SUBWAY CUP then i saw "Not Affilated with McDonald's

really good video

so in reality, even the franchise owner is just another mcdoogle employee making them millions more...

Why would anyone do this ?? It’s just getting fuct on a higher scale

The franchise system makes sense if you have millions in the bank. You need at least 10 to make a million dollars. But, even if you have one it's still not worth it. Having to constantly run it is difficult. There are some families that will buy a franchise together to diversify time and money but still, you're better off buying the stock.

The end of this video was awesome

Subway has entered the chat:

The franchise I work for has a revenue of 10 mil but the owner only gets 250k 😂😂 the name is J5C Management limited u can view their financial statement

Great video

I miss the McDonald's from the 90s to 2000 after that McDonald's has never tasted the same for me in Australia anyway

I'm a former owner and retired at 49. We make WAY more than that. Lots of wrong info in this video!!

Why is there ultra shitty feel good music playing in the background ?

It's not a hamburger business, it's a Real State business. MacDonald owns the most expensive corners/locations around the world. When we learn business and money it's a game changer. I hope more people watch this kind of videos.