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There's no question about it, McDonald's is the most successful restaurant in the history of the world.
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The company isn't worth millions, but billions—nearly 150 billion USD—and that number keeps climbing every day.
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Back in the 1950s, the man who would eventually turn McDonalds into an international powerhouse, Ray Kroc, had a lot of big ideas for the restaurant.
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But perhaps his biggest idea can be summed up in a single word.
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"Franchise, franchise, franchise, franchise, franchise."
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The food at McDonald's has always sold like hotcakes but once the restaurant started franchising, the world began eating up the brand.
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So, it's not surprising that for decades, entrepreneurs have been flocking to the golden arches with dreams of opening their own McDonald's.
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But being a franchise owner isn't as easy, or profitable, as you might think.
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For starters, buying into a McDonald's franchise is expensive, and if prospective franchisees want to get a piece of the pie, they'll have to bring some heavy coin to the table.
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According to Business Insider, the initial investment is between 1 million USD and 2.2 million USD.
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That price tag is pretty broad, but McDonald's notes that these costs are based on the restaurant's location and size.
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Long story short, it's going to cost a lot more to buy a McDonald's franchise in San Francisco than it is in Saginaw, Michigan.
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Before you take the plunge with Mickey D's and start your own franchise, keep in mind that 40 percent of that initial investment must be cash or nonborrowed assets.
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Whether it's McDonald's or other fast food restaurants, franchise owners can do pretty well, at least, once they get past their initial investment hurdle.
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According to Business Insider, the average McDonald's restaurant takes in around 2.7 million USD a year in sales.
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That may not be quite as high as other well-known eateries, such as Chick-fil-A or Panera Bread, but it's still pretty good.
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Of course, some McDonald's franchise owners are going to make more than others, but most franchisees pull in an estimated yearly profit of roughly 150,000 USD.
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However, after 2.7 million USD in sales, a profit of 150,000 USD isn't even 6 percent.
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Once you deduct the price of supplies, food, payroll, and about a dozen other costs handed down by the corporation, that's what an average franchise owner is left with.
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The franchise system has been a major reason for Ronald and his company to celebrate since the 1950s, and it's actually how McDonald's makes a significant portion of its profit.
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Plus, franchise owners have historically brought a lot more than money to the table by contributing some of the company's most important innovations.
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"The Big Mac, the Filet-O-Fish, even the drive-through concept were all developed by franchisees working within the McDonald's framework."
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So while McDonald's franchise owners can make a six-figure salary through their restaurant, the McDonald's corporation is making much, much more.
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It all starts with the 45,000 USD franchise fee that owners pay.
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Then, there's the never-ending monthly service fee that takes 4 percent of a location's gross sales.
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After that, franchisees pay a rental fee each month, which works out to be an average of around 10.7 percent of sales.
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So basically, McDonald's franchise owners are forking over 15 percent of their sales every month to the Mickey D's machine.
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This system is extremely profitable for the Golden Arches.
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So much so that only around 5 percent of the McDonald's locations on the planet are owned by the company.
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The rest are franchise operations that are paid for upfront by the franchise owner.
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According to Reader's Digest, McDonald's raked in 27.4 billion dollars in revenue in 2014, and how that breaks down is pretty telling.
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9.2 billion USD of the revenue was from franchised locations and 18.2 billion USD was attributed to company-owned locations.
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On the surface, it sounds like the company-owned locations are the real money-makers, but that's simply not the case.
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The cost of running a business, especially a restaurant, can really cut into its profits.
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At the end of the day, McDonald's only keeps around 16 percent of the revenue its company-owned stores make, but it keeps 82 percent of the revenue franchisees pay out to it.
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That all adds up to megabucks for Mickey D's.
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So, while owning a franchise should put plenty of food on your table, the McDonald's corporation will take a huge bite out of your bottom line.
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"It's like they don't care if you make money as long as they make money."
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"What kind of corporation does that?"
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