Each cost category is disclosed as a range. The values shown are the midpoint of each range to represent the average cost, actual costs vary by location. Total range per the FDD is $525,000–$2,728,000.
Why a Sankey diagram, and why that ordering for the components?
Ryvit on
I feel like everything is reasonable until you get to the signs, seating and equipment lol.
Unless that includes the cost of constructing the building itself, but it doesn’t seem like it does.
If a building is already setup for a fast food restaurant and you’re just adding McDonald’s equipment and seating that blows my mind it would be almost 1.1 million dollars
HeatGlobe on
Over a million dollars just for signs, seating, and equipment?! With that kind of budget, you’d think they could finally afford to keep the ice cream machine running.
Decolater on
For those of you like me who did not know what working capital revenue is, it’s basically emergency money in case the other line items need more.
Raspberries-Are-Evil on
How much can a decent location profit each month?
AnswersQuestioned on
What’s the ROI on that 1.6m?
Thewall3333 on
Where is the personnel costs? Salaries for employees and managers, benefits, insurance, etc?
And if that’s not included in “startup costs”, what would they be for this 3-month period? I have no idea. $50,000? 500,000? Never been in business
Lindyhop88 on
So even taking a loan for the initial investment and not performing an operational job at the restaurant youd make a really good monthly personal income from this. If you act as gm in your own facility theres an opportunity to really make significant income from just one store.
Say up to 15-20k to loan cost and 10k monthly to be personal income. Then 9-10k monthly from acting as gm. Doesnt sound so bad. Pay off all in 7 years and hire gm to then take entire profit as income or save up enough to do the same again and build small empire of franchises.
tyen0 on
I wonder why 3 month’s rent
Familiar_Kale_7357 on
My first thoughts were about starting up a McDonalds, which suggests the chart is doing its job.
TheBigBo-Peep on
This looks very very far from accurate proportions
That million is not 2/3
stupidber on
Seems like itd be more than that
GongTzu on
MCD are the winners of this setup. The amount spend on inventory is very low, compared to what it brings in revenue
kkngs on
What about wages / payroll?
viewerfromthemiddle on
I for one like the Sankey presentation. The only issue is the misplaced apostrophe in 3 months’ rent.
![[OC] McDonald's franchise startup costs (2025)](https://www.byteseu.com/wp-content/uploads/2026/03/oupqgq1vfnng1-1024x869.png "[OC] McDonald’s franchise startup costs (2025)")
17 Comments
**Source:** [https://www.franchisedirect.com/foodfranchises/mcdonalds-franchise-07030/ufoc/](https://www.franchisedirect.com/foodfranchises/mcdonalds-franchise-07030/ufoc/)
Each cost category is disclosed as a range. The values shown are the midpoint of each range to represent the average cost, actual costs vary by location. Total range per the FDD is $525,000–$2,728,000.
**Tool:** [vestlyfi.com/create-a-diagram/budget-sankey/](http://vestlyfi.com/create-a-diagram/budget-sankey/)
Why a Sankey diagram, and why that ordering for the components?
I feel like everything is reasonable until you get to the signs, seating and equipment lol.
Unless that includes the cost of constructing the building itself, but it doesn’t seem like it does.
If a building is already setup for a fast food restaurant and you’re just adding McDonald’s equipment and seating that blows my mind it would be almost 1.1 million dollars
Over a million dollars just for signs, seating, and equipment?! With that kind of budget, you’d think they could finally afford to keep the ice cream machine running.
For those of you like me who did not know what working capital revenue is, it’s basically emergency money in case the other line items need more.
How much can a decent location profit each month?
What’s the ROI on that 1.6m?
Where is the personnel costs? Salaries for employees and managers, benefits, insurance, etc?
And if that’s not included in “startup costs”, what would they be for this 3-month period? I have no idea. $50,000? 500,000? Never been in business
So even taking a loan for the initial investment and not performing an operational job at the restaurant youd make a really good monthly personal income from this. If you act as gm in your own facility theres an opportunity to really make significant income from just one store.
Say up to 15-20k to loan cost and 10k monthly to be personal income. Then 9-10k monthly from acting as gm. Doesnt sound so bad. Pay off all in 7 years and hire gm to then take entire profit as income or save up enough to do the same again and build small empire of franchises.
I wonder why 3 month’s rent
My first thoughts were about starting up a McDonalds, which suggests the chart is doing its job.
This looks very very far from accurate proportions
That million is not 2/3
Seems like itd be more than that
MCD are the winners of this setup. The amount spend on inventory is very low, compared to what it brings in revenue
What about wages / payroll?
I for one like the Sankey presentation. The only issue is the misplaced apostrophe in 3 months’ rent.
MCD franchinees pay 50k/mo in rent???