Typical* Annual Sales £2.0 million - £5.8 million
From January to December 2025, 80% of all McDonald’s UK franchised restaurants had sales between £2.0m and 5.8m.
To invest in a McDonald’s Franchise, the minimum financial requirement is 25% of the total investment in unencumbered funds.
The remaining 75% investment can be funded by a bank and Franchisees may wish to use banks with which McDonald’s has a relationship since these provide very competitive rates.
Those interested in becoming a Franchisee will need to invest circa. £300,000 in unencumbered funds
Of restaurants franchised in 2025, the cost of purchasing the franchise rights and equipment was between £900k and £1.5 million*. This was valued on profitability over a ten year period using a projected future cash flow.
The opportunity to own and operate a McDonald’s restaurant may come from a direct purchase from McDonald's or via one of our existing Franchisees.
While our standard minimum investment requirement is £300k, we recognise that every prospective partner brings a unique blend of experience, financial profile, and potential. Even if you do not currently meet the minimum investment level, we’d still welcome an initial conversation. This allows us to understand your circumstances, discuss your aspirations, and explore whether an opportunity with us could be the right fit, either now or in the future.
*Typical payment needed to obtain the right to purchase the franchise rights and equipment for a first restaurant. In certain circumstances, McDonald’s may be able to offer alternative financial arrangements, done so at the franchisor’s discretion.
Typical Rent, Advertising and Royalty
The monthly rent payable by 80% of restaurants franchised between January 2025 and December 2025 ranged between 8% and 18% of that restaurant’s net sales. Typically, this rent is fixed for 20 years on the initial term. Rent is calculated over a ten year period factoring in projected sales and profitability.
There is an additional monthly royalty of 5% of the net sales for the use of the McDonald's system as well as a contribution to the marketing fund which is currently set at 4.3% of net sales.
Typical Annual Cash Flow after first year: £120k-£400k
Cash flow is the money left in your business before you have taken a personal draw, and paid any loans or tax payments that may be outstanding.
Typical return on investment (ROI) over 20 Years 20%-25%
ROI is modelled such that a Franchisee may have the potential to generate 20% - 25%* annually, over their term. Note that this doesn't take account of any future investments you will make into your business during the 20-year term.
*The ROI range may vary based on future business performance and how individual restaurants are operated.
Banking Support
McDonald’s has long-standing relationships with well-established banks, who can offer competitive rates and support to Franchisees.
