McDonald's Franchise Costs, Fees & FDD.

 

Note: FDD pages are provided for informational purposes only. This page is only a brief overview of what is contained in the full franchise disclosure document, which is to be given to the prospective franchisee by the franchise—and receipt of which must be formally notarized between the parties. Independent legal and professional advice should be sought before undertaking any investment in a franchise.

Year Business Began: 1955

Franchising Since: 1955

Headquarters: Chicago, Illinois

Estimated Number of Units: 44,115

Franchise Description: McDonald’s USA, LLC is the franchisor. The franchisor is a wholly owned subsidiary of its parent and predecessor, McDonald’s Corporation. The franchisor develops, operates, franchises, and services a system of restaurants that prepare, assemble, package, and sell a limited menu of value-priced foods under the “McDonald's System.” A grant of a McDonald’s franchise authorizes franchisees to operate a McDonald’s restaurant business at a specific location and to use the McDonald’s System in the operation of that restaurant business for a specific period of time. The franchisor offers four types of franchises:

1. Traditional Restaurant: Franchisedirect.com offered is located in freestanding buildings, storefronts, food courts, and other locations. The franchisee operates a full-menu restaurant, offering the public a high standard of quality and uniformity in food and service.
2. Satellite Locations: The franchisee is granted the right to operate the franchise in a retail store, strip center, airport, universities, hospitals, and other diverse locations. These restaurants serve a scaled-down menu of a traditional McDonald’s restaurant and, in some cases, may also serve non-McDonald’s trademarked products.
3. STO and STR Locations: “Small Town Oil” locations are situated in fuel stations/convenience stores and operate a full-menu McDonald’s restaurant within the shared space. “Small Town Retail” locations that anchor a small retail center in rural communities.
4. BFL Franchises: For “Business Facilities Lease” franchises, the franchisor grants franchises with leases that include the business facilities. These are limited cases.

Training Overview: Franchisees must complete the training program successfully before signing the Franchise Agreement or paying any money to the franchisor. The franchisor operates Hamburger University (HU), the international training center for the McDonald's system. 

All courses and learning events are offered at frequent intervals and are designed to give franchisees specific skill sets in the various facets of the conduct of a McDonald's restaurant. The basic minimum core training, which franchisees must complete to be qualified to operate a McDonald’s restaurant, is known as the Candidate Development Program. 

The Candidate Development Program is deployed through Campus and Fred, which allows franchisees to complete and track the progress of their assigned learning online. It can take six months to two years to complete all learning plans, from Shift Leader through Restaurant Leader. The complete training program and materials include many elements. 

As part of the training program, franchisees must perform and master all of the crew and management functions at the restaurant. At the opening of the restaurant, a franchise business partner will spend time with franchisees providing assistance and refinement of previous training and instruction. Annual meetings, conventions, various workshops, and other training sessions may be conducted on an ongoing basis within each field office, and McDonald’s may require franchisees to pay for the costs associated with that ongoing training or participation. Additionally, optional courses may be offered to franchisees or their employees for a fee.

                                  

Get the full story:  Franchisedirect.com