New Restaurants

Relatively few first time Owner/Operators obtain a new restaurant. The costs associated with new restaurants are as follows:

Initial Costs

$45,000 Initial Fee paid to McDonald's

Equipment and Pre-Opening Costs

Typically these costs range from $1,012,200 to $1,840,000. The size of the restaurant facility, area of the country, pre-opening expenses, inventory, selection of kitchen equipment, signage, and style of decor and landscaping will affect new restaurant costs. These costs are paid to suppliers.

The new Owner/Operators must pay forty percent (40%) cash of the total costs of a new restaurant, and may finance the remainder from traditional sources. While McDonald's does not offer financing, McDonald's Owner/Operators enjoy the benefits of our established relationships with many national lending institutions. We believe our Owner/Operators enjoy the lowest lending rates in the industry.

Franchise Term

20 Years

Ongoing Fees:

• Service fee: a monthly fee based on the restaurant's gross sales (currently a service fee of 4.0% of monthly sales)
• Rent: a monthly base rent or rent based on a percentage of monthly sales