FranchiseOptions Case Study 06
McDonald’s typically controls the site in a conventional franchise, while the franchisee invests in equipment and operates the restaurant. A developmental licensee generally provides the capital, secures the real estate interest and develops and operates restaurants in its market. Company disclosure
How does the conventional franchise work?
| Topic | What to know |
|---|---|
| Property | Company generally controls the site |
| Equipment | Franchisee funds the fit-out items |
| Operations | Franchisee runs the outlet |
How much of the global network is franchised?
At 30 September 2026, McDonald’s reported 46,554 restaurants worldwide, approximately 95% franchised. The company’s franchised network includes conventional franchisees, developmental licensees and affiliates. Source and reporting details
What should founders and prospective operators check?
Conventional arrangements generally include rent and royalties. Developmental licensees generally pay sales-based royalties and initial fees. Ask who signs the lease, who funds refurbishment and what happens if sales fall short.
For founders: Decide which responsibilities the brand should retain and check that the local team can handle the rest. For prospective operators: Verify who grants the rights and request the proposed costs and operating obligations in writing.
Read next: Subway’s Everstone master franchise case.
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This independent editorial case study by FranchiseOptions draws on public sources. Figures and models reflect the dates and markets covered. For current franchise availability and commercial terms, contact the brand or its authorised representative. The featured image is an AI-generated editorial illustration.
