How Much Mcdonald's Franchise Owners Really Make Per Year

[@MashedFood]

Do you think owning a McDonald's franchise would be worth it?

[@mooemoop8200]

Maybe in Asia

[@evettc7887]

Why? You can find one in almost every town and big cities every other block practically.

[@slowanddeliberate6893]

No. $150,000 a year is a lot less than I assumed franchise owners were making.

[@acyoutuber07]

Not for me.

[@namvet1968]

@@mooemoop8200 Wonder how much a franchise costs in the Philippines?

[@xjcrossx]

My dad's good friend has 5-10 of these franchises, inherited from his father, and he gave one to each of his two kids. They tell people they work at McDonalds and just leave it at that lol.

[@PAYDAYHEDGE]

@marko lol

[@joco2826]

@marko what part of 5 to 10 don’t you understand

[@richflores1558]

I would also jokingly put it like that if someone were to ask where I work lol. If I had 3 franchises I would say I work at 3 McDonald's just to blow their minds lol 😆!

[@AnimeZone247]

@@joco2826 who hurt you 🥺

[@chazzlebazzle69]

5 to 10....make ya mind up

[@TheGeonam]

I was setting in my car eating a McDonald's hamburger in their lot. I noticed how many people were using the drive up and those who went inside. This was about thirty years ago and a light went off in my head. Buy McDonalds stock. That's what I did and I am happy with the way the stock has preformed.

[@cnsmiles]

That’s why you should own a “McDowells”. Instead. Keep 100% of your sales!

[@144k_Kingdom_Living]

They have the Big Mac, we have the Big Mic.

[@abec8929]

This comment made my day 😂

[@warriordugan7236]

What about McDougles? They make the Big Doug.

[@Bully1973]

@@144k_Kingdom_Living Our buns have no seeds.

[@144k_Kingdom_Living]

@@Bully1973 lol

[@yell0wberry]

Many many moons ago I worked for a guy who opened up a McDonald's express, it cost him a total of $250,000 just to buy in even before spending other money just to get it off the ground. Years later, he owns quite a few locations in the New York tri-state area and became a billionaire, his name is Paul Hendel, A very nice man Who gave me a chance to make some money after school when I was very young, had I stuck with him, perhaps I could have been rich too, he rewards loyalty

[@fgcpeak9591]

Or maybe become self made and stop looking to people to "give you a chance"

[@yell0wberry]

@@fgcpeak9591 I thank my lucky stars I wasn’t a jackass to say that same comment to someone else. I’m pretty sure if I had $250,000 I could have opened up my own restaurant, now go troll elsewhere

[@fgcpeak9591]

@@yell0wberry OR MAYBE BECOME SELF MADE AND STOP LOOKING FOR SOMEONE TO GIVE YOUR WEAK, LAZY SELF A HELPING HAND. LEECH. GO FIND OUT HOW TO MAKE 250K, YOU DEFEATIST SALAMADER

[@haroldcounts7460]

​@@fgcpeak9591how many people do you know that become billionaires from scratch? It takes money to make money.i was a business owner for a lot of years and i never got rich. A person who has a few million dollars has a better chance of doing well in business than a person with nothing. Take for instance a mc donald franchise owner,it usually cost them at least 3 1/2 million before they sell one hamburger.thats 2 million franchise,1 million building and equipment and then stock and employees.thats a lot of money 😸

[@ILuvTrading]

Every franchise owner I know owns more then one franchise. You don’t go in just to run one. Anyway all of them are multimillionaires now.... actually they were all multimillionaires prior... well at least their families were. And they don’t hang out at the stores either..... hell they don’t even know any employee names.

[@coopsnz1]

Wrong the middle class liar with million dollar debt

[@muhammadrazashahhash]

@@coopsnz1 lol you must be broke

[@davidnegrete1821]

Not true my operator literally is on the floor sometimes making food and he himself started as a grill crew so it’s possible

[@davidgraham9053]

I was told many years ago that when Macca's decides on a new location that preference is given to existing franchisees so really hard to become a franchisee as a first timer. In Australia at any rate.

[@coopsnz1]

@@davidgraham9053 socal democracy screw business owners in Australia 30 yrs

[@miepmiepzoefzoef]

I was in a positon where I knew a lot of Mc Donald's franchise owners. They drove nice ferrai , Porsche and other expensive cars. You do not have to feel pity for the franchise owners.

[@roddycreswell8613]

Hating on people with a work ethic makes zero sense.

[@jaesgarage615]

McD’s is the largest real estate holder by far in restaurant business.

[@tomthrivix]

JAE’s Garage in the world, not just restaurant

[@DeeJayLovehunter]

Until jollibee starting to ruin it

[@Zo-hc2fn]

I am thinking about a new type of restaurants : eating-spots, in eating-spots, food keeps changing, chefs also rotate this is opposed to current restaurants, thanks to this rotation of food and chefs, eating-spots are more powerful than restaurants, along with that, there is an app, people vote for the food that will be cooked in the next days, menu is influenced by the live input of the people via an app

[@kevinsiu3769]

@@Zo-hc2fnupdate?

[@Zo-hc2fn]

@@kevinsiu3769 I am actually only sharing the concept, feel free and welcome to take it

[@MarkB-vp9ki]

My friends dad owned three McDonalds for quite a number of years( he is now retired) and believe me he made way more than 150k for each store and these are smaller market stores.

[@NoName-vy8vu]

Tell me more please. Nice to hear actual evidence rather than random speculation.

[@bigfan2452]

@@NoName-vy8vu me too, I would love to hear more from him.

[@Gulibear]

@@bigfan2452 me too, I would love to hear more from him.

[@FirstnameLastname-tp4zw]

😂😂😂

[@tonywalton1052]

my dad owned 5, which is 2 more than your dad

[@mauricecole1196]

McDonalds normally gives you two choices on locations, your hometown or another location where there's an opening. I worked for a 2nd generation owner in the 90's, he did well by owning 5 stores. Most of the marketing in most areas are voted by a group of owners, specials, pricing etc. Some areas prices are higher or lower than others, depending where the store is located. Every 6 to 10 years the licensee must upgrade their stores, new equipment or full remodel. Some owners with multiple stores can afford it , while a one location cannot do one right away. The owner I worked for recently sold his stores to his son.

[@TheTraffic247]

Franchising isn't for everyone. Anyone who wants a life and true ownership starts his/her own business. Don't waste time with franchises, they are worse than being employed. If you really have the cash just invest it sensibly. You'll do far better with much less effort.

[@jesswilson6012]

TheTraffic247 Don’t dismiss something that’s so successful as a “waste of time” as if it’s a matter of fact. That makes you look foolish.

[@TheTraffic247]

@@jesswilson6012 Right now your comment makes you look foolish. I have owned 3 different franchises in the past. It's not what folks like you think it is. Franchising helps the actual business owners. Once you take out the fees, the annual dues, profit shares, you as someone who invested time, energy, sweat and money don't do so well. The reason the franchise concept works so well is because of brand leveraging. Atleast thats what the illusionary "success" you naively allude to really is. So, yea, it's a waste of time. Start your own unique brand or invest sensibly. The concept of franchising is great, the execution usually is not, especially for the frachisee. That's a fact.

[@jesswilson6012]

TheTraffic247 just because it didn’t work so well for you doesn’t mean it’s not a successful business model. I’m not saying you’re not credible or that starting your very own business is a bad idea. All I’m saying is that franchising has been proven to be a successful business model. No need to call it a waste of time. I agree with brand leveraging and not all brands are equal. There’s too many success stories with franchising to call it a waste of time. That’s your opinion.

[@TheTraffic247]

@@jesswilson6012 Again with your assumptions. I didn't continue because it was exhausting and created a lot of stress (financial and otherwise), not because "it didn't work for me". There are equally bad stories of people losing it after going the franchising route. Success stories don't give this business model anymore credence than failed franchise owners' stories does. It merely is a talking point for which side you're on. I've been through the experience and did financially well for myself, but because I've been through it I know that for most folks it's a waste of time. You still have to work your butt off and depending on your franchise choice you might miss a lot of life happening around you. At the end of the day, you're not really an independent business owner but a partner in a business who has to pay a whole lot of money and invest too much time just to make an executive level salary. Is it worth the risk? Depends on who you ask. Mine is an opinion based on empirical evidence. Your's is just an opinion. Let's just leave it at that.

[@jesswilson6012]

TheTraffic247 I never said I didn’t have any experience in franchising. I was only basing my statements off of what info you provided. I imagine if things did “work out” or whatever you prefer to call it, chances are you’d still be in the franchise business. Just so we’re not hung up on technicalities, when it comes to creating ongoing/ passive income streams, the concept of franchising or duplicating a proven system can’t be beat. There’s always going to be risk, time commitment, expertise, and cost involved with any entrepreneurial enterprise. For the sake of agreement though, I’ll just say it’s my opinion. I do however, wish you much success in your endeavors! I know how challenging entrepreneurship can be in any form and I respect you for taking on the risk.

[@colind7678]

Most franchises make between 100-150K for the owners, take into account that the owner is often the Manager and only needs to work 2-3 hours a day at one franchise and collect the wage for that position, it's a great job.

[@Smalex1991]

M Detlef lol no

[@ch00ronaldo]

You not taking account how much you already spent to get the franchise started. From 1 millón to 2 was the price to become a franchisee so your looking into several years to get it back and start making a profit.

[@600jccbrrr]

christian beltran exactly $150,000 x 10 years = 1.5 Mil

[@robertmasina7388]

@colind. How much of the population would give their right arm to make over $100 to $150 thousand per year.

[@colind7678]

@@robertmasina7388 Likley less than .001%

[@aaronbritt2025]

I worked Summers at McDonald's in the 80's when I was in High School. Even then, I knew buying a franchise was a horrible idea if you couldn't afford to have at least 5 or 6 stores. Some things not mentioned in the video... Franchisee's are obviously required to purchase all of their food and supplies from McDonald's. Often, the prices they pay are over market value. The owner of the store I worked at often complained that he could buy beef and produce cheaper elsewhere but was required to buy from McDonald's. McDonald's also runs promotions that often require franchisee's to sell food at a loss. That "two sausage egg McMuffins for $4" promotion is a money loser. The intention is to drive people into the stores with the hope they'll order highly profitable soft drinks as well. If you don't, the just lost money. Franchisee's actually brought a class-action suit against McDonald's over this. One more thing not mentioned is that McDonald's requires prospective franchisee's to have worked as a manager in a McDonald's for 2 years. You also have to attend classes at "Hamburger University" in Florida. They may have changed that policy, but that's what was required when I looked into it.

[@edmondlau511]

I think fees is what caused so many Quiznos to go under.

[@BigGreenCav]

All the lazy losers here want to think there's no work involved and they're somehow victims of these wealthy franchisees. No.

[@JaneDoe-ub7xp]

150k a year is very good. The owner barely has to do anything other then to manage some things. Plus that’s a pretty good cap rate of about 8-12%

[@shortround9134]

That makes sense, pay 1million first to McD's then after all the fees you pay for the year your gross profit maybe 150k, you can get that kind a money working a good job....

[@Alex-jq3tx]

You’ll make your money back in a couple of years

[@o0keitaro0o]

@JasonRJ If you have 1 Million dollar sit on the bank u have or the qualifications for it, or the background to get that job.

[@lindafukuyu5767]

I work as a software programmer and I make more than 150K annually without investing a million dollar. My investment is pure brain and certificate. That's all. and, I got bonus too at the end of the year depending on the company performance and my performance as well.

[@Aron-ru5zk]

Difference is you don’t have to do hardly anything to make said 150k

[@mualan4683]

@@lindafukuyu5767- you still have vaction and weekend off but they don't. They work 365 days all year long

[@mortalstorm]

It amazes me how many here post comments about how they know of someone who owns a franchise and do little work to rake in big profits. The truth of the matter is quite different. In the over-whelming cases, owners have to be thoroughly involved with the business if they hope to have a chance of seeing it run smoothly. Hiring a management team is great in theory, but unless you as owner become involved in the day to day workings of the business, you may be cooking up a recipe for disaster. Mismanagement and outright theft could torpedo the business in very short order. No type of business is immune. If you’re not willing to give it the time and effort, look elsewhere to invest your money.

[@jakejake7289]

100%

[@colinjohnson9862]

Well said. I own a franchise and for the first 5 years spent 80 hours a week there. No joke. Got a lot of grey hair too.

[@alanvazquez1635]

I’d rather buy McDonald’s stock & take my chances with that.

[@DanielGreenlee]

$2m of stocks bought in 2015 would be worth $4.5m today. Roughly $500k profit YoY versus $150k YoY owning a franchise store (not including managing the business, etc.)

[@_RobBanks]

Yea but u won’t be making no where near 150K annually! Even if u invested ten million. Lol u wouldn’t get 150K out of ten million for at least ten years

[@_RobBanks]

Daniel lOL no- U say in five years they make 200%? Kkkkkkk bud

[@ferretsmiles]

@@_RobBanks the stock price in 2015 was around $100 in the past twelve months the stock has never been lower than $174. It does not take a mathematician to see how someone could double their money (pretax), without even considering the dividend that McDonalds pays out. The dividend on that much money invested should be between $40,000 to $80,000 depending on what price the stock is at.

[@_RobBanks]

Fernando Diaz that’s crazy

[@AUNZAnon]

There's only ever ONE winner in modern day franchise operations and that's the franchisor.

[@Rhyme905]

only idiots are buying up these franchises and after you are stuck its hard to get out

[@jeffha4057]

You're paying $2 million to be a manager at McDonald's.

[@junito1008]

It's like Uber...They take about 35% of the Driver's Profit. SMH

[@Mandology575]

So you don’t own a McDonald’s franchise. You’re actually a well paid McDonald’s employee.

[@brothertone7337]

Exactly!! 100 percent accurate. You can't even sell the franchise you own without there permission and approval of the buyer.

[@HARLEMHEFNER]

It's a licensing deal that's all. You can't make changes to the menu or the price of food. McDonald's handles the build out of the restaurant. your covered for any liability

[@pablovi77]

And that is, if you make money. You could lose it all, imagine, it takes 10 years to recoup the initial investment!

[@libertas-goddessofliberty5664]

"It's like they don't care if you make money, as long as they make money" - The Simpsons

[@invaderz1919]

That's human nature.

[@sjarnatojar744]

Give me your tired, your poor, your huddled masses welcome to America

[@yoyu8641]

You're still making 150k a year and you dont even need to show up

[@NGMonocrom]

It almost sounds like a pyramid scheme. Those who got in early, get all the benefits. Those who didn't, get peanuts.

[@DineshDinesh-nh9wk]

Agree!

[@foxt.5043]

For those wondering, every company as a different price to open a franchise. McDonalds in particular is so expensive because 1. There's so many 2. Sales volume is just about guaranteed to he high 3. If it was cheap, every asshole with a wallet to burn would try to open a franchise and devalue the chain in the process because there's too many in the wild Those thinking it's a bad investment, not really. Though, it clearly wouldnt be the smartest idea to have a mcdonalds be your first business venture. Personally, I would recommend buying residential real estate or partnering with another company. At the end of the day, buying a mcdonalds isn't the worst investment. Not even close

[@abcdLeeXY]

McDonald's basically pays the owner a mid range salary to help drive 2 million in profit for themselves. Brilliant business model.

[@kevinkearns2085]

Wow! It's enlightening to hear all these experts who have never owned a franchise claim they know how it goes.

[@NK-iw6rq]

Not worth the headache and everything that goes behind running a franchise.

[@jamescameron149]

I wouldn't bother. If you have that amount of upfront money, their must be better ways to make more.

[@SolaJar26]

James Cameron Real estate

[@wildcatcountry-bigbluenation]

They should take some of their "BILLIONS", and invent an ICE CREAM MACHINE that actually WORKS.

[@embracetheglobe]

Jeremy Kemble true

[@Aron-ru5zk]

It’s never broken, the machine needs to be disassembled and sanitised every day which takes about 4 hours. They say it’s broken because it’s easier to convince customers that it takes 4 hours to fix it rather than convincing them it takes 4 hours to clean.

[@jameswarren3838]

Not sure where the numbers came from, but the average McDonald’s nets WAY over $150K. Additionally, owners also draw a salary from each store they own, usually around $200-$250K annually. So, $250K salary plus another likely $200-$400K net starts looking quite attractive. And then of course, the Mercedes that they drive is leased to their corporation and the vacation they take is “business” which are just a few perks-all adding up to a rather nice investment.

[@jameswarren3838]

Andrews cool Average is the key word. My MBA and restaurant experience puts me pretty damn close.

[@patrickmiller3569]

@@jameswarren3838 Do they really receive a salary for every restaurant they own? I knew they received a profit.

[@dalegribble60]

The franchisee that opened several stores over the years starting in '78 in our Canadian town of 100,000 claimed to had made just over a million dollars a year.....THOSE were the years to own a franchise!

[@RetrocadePodcast]

That's a low-end number. Most McDonald's franchises net about 10% of gross sales, which is really closer to $250,000 a year. I know a McDonald's franchise owner and between his two restaurants he nets about $700,000 a year. I know another franchise owner who owns a dozen McDonald's in the New York metro area and she is incredibly wealthy.

[@shawnerickstad7927]

The couple people I know who own a McDonalds franchise each owns several of them so do very well

[@lilolme69]

My buddy owned 36 Burger Kings and retired when he was 50. The 20 years before that, he spent hundreds of millions on racing or else he could have retired way earlier. But.... franchises are not for me.

[@spinespindle9872]

I love how the stock footage that you used in the video shows McDonald's employees super happy flipping burgers and customers dancing

[@user-us6ce7me8k]

More than it's worth that's for sure..

[@Sickwitit18]

That's why most MCD owners have multiple stores. Making over a million a year in profit is not hard when you own multiple stores. It's rare for an owner to only have one store

[@thumbyman7832]

Zappacosta where did apple come into play?

[@Sickwitit18]

@M Detlef exactly

[@BruceWayneWorld]

My friend owns 4 McDonald's ....she has owned them for over 15 years...she is a millionaire and has a big home with a $1000 a month electric bill.....

[@thelandballin747]

I don't believe they only make $150,000. You would be better off just investing the money instead of that headache.

[@xkyleprivatex815]

The restaurant I work at is part of 13 other restaurants owned by a franchise. The franchise made 36 million in sales last year, 13m got eaten in franchise fees, and the rest on costs and admin, leaving a 1.2m profit after tax.

[@coopsnz1]

No way 1 milion you keep 10% net profit

[@coopsnz1]

You lefties have no idea how to calculate, you think turnover profit

[@RK831]

"Ladies and gentlemen, I'm not in the hamburger business. My business is real estate." --Ray Kroc Quite simple: the company owns the land on which each franchise is paid, and collects rent and various fees so overall a franchisee will finish with 6-7% of gross sales--I reckon 6% given the rising cost of labor. One of my buddies owns six Taco Bell franchises in Mississippi. Two of them he does not own the land; he gets about 7% of gross sales in those stores, but those are very busy stores given their prime locations. The remaining four he owns the land, and those stores get him 14% of gross sales. He and his family are living very, very well.

[@SeanKula]

Wait how does that work? How does he get 14% profit? Is the company paying him rent. I'm so confused lol.

[@RK831]

​@@SeanKulaI was talking about a Taco Bell franchisee. Because he owns the land, he does not have to pay for a lease, so he earns 14% instead of 7% gross sales had he payed rent.

[@SeanKula]

@@RK831 thank you for the explanation

[@rscott2187]

The next "adjustment" or correction in the stock market that brings McDonald's stock down is the way I would buy a franchise. Own the stock, purchased below intrinsic value. The franchisee never gets to participate in the easy future profits of the big profit center of the business, which is Real Estate. Plus no inventory No employee's No overhead (less the price of the stock) No phone calss No working weekends and holidays No workers comp. etc. etc. etc.

[@fljetgator1833]

What a pain in the a$z for net of 150k. Managing the no shows, high turnover, messy, long hrs.. Toooo much responsibility for a paltry share. 🤣

[@ronjose51]

Franchise owners are hardly ever around their business bro lol That’s why they hire people call “managers”

[@RetrocadePodcast]

That's a low-end number. Most McDonald's franchises net about 10% of gross sales, which is really closer to $250,000 a year.

[@holeeshietpyro4072]

and esp if you got a store that seems to keep burning down once a year like one near me, its been revamped over and over again like clock work after fires.

[@SingleMaltBuckeye]

That's why the vast majority of franchise owners own multiple locations and hire have their lawyers run it. Then you're making millions doing nothing but waiting for lawsuits. Lol

[@AllHandlesRTaken]

Jose Ron How much they pay that manager? Bye bye profit. McD managers do quite well ( like six figures)!

[@JimmyBrock]

McDonald's owns the land and the building of each location

[@jubilant714]

I work there. Don’t ever work there.

[@owenb8636]

for real. McDonald's never staffs properly and works its employees ragged. I was so happy to leave for a better job

[@schallrd1]

Never work someplace that had a clown as a mascot.

[@asimhusain8087]

My condolences I spent 14 years there a manager asked me to reapply, I did not.

[@DanBurgaud]

More than 30 years ago, my uncle came to visit us chatting with my parents.... yada yada yada blah blah blah.... Then the conversation went to one of the stores near him - a mcdonalds franchise. he was bashing it why the neighbor spent more than $200K for the franchise and he is immediately at a huge loss not gonna make money.... some six months later he came to visit again and was amazed how that franchise earned all that money back and is already in the black in just 3-4 months of operation!!!! BTW. it was THE prime commercial area of the city!

[@RedLeo-pf9yo]

McDonald’s runs the company like the Italian mafia.

[@HuGenitals]

RedLeo3000 they run it better. They got government on their side, local and federal.

[@williambrightman7541]

Everything in McDonald's comes from McDonald,s There's no other vendor a store owner can yse.

[@hornetluca]

I don't know...I don't even like McDonald. A burger is too expensive, I prefer eating a pizza instead

[@MultiBillionHeir]

DonkeyLips McGee a pizza is a better bargain depending on where you go.. a combo is just under $9 while you buy a medium and sometimes large pizza for about $1 extra. You can feed more than one person off the pizza plus the restaurant gives you points to earn free food.

[@niggas286]

If u think McDonald's burgers are expensive, everything is expensive

[@MultiBillionHeir]

Aimless Vidz not true they are expensive especially when you can take $8 - $13 bucks buy your own meat, bread etc & make 8 hamburgers & feed 4 ppl instead of buying a supersized combo for 1 person.

[@GJ-DT]

Pizza better for you also, you can eat pizza everyday if you eat McDonald's everyday it wont turn out well. Deep fried us not food its garbage

[@hornetluca]

@@GJ-DT well said

[@samsabastian5560]

I'll take Hungry Jacks any day of the week.

[@lawnman3638]

It might be a 6% profit margin but it is nearly guranteed money. There is less risk in owning a McDonald's franchise than investing in the stock market.

[@Crazy-Horse-Tx.]

2.7 million is nothing. Add up your overhead ; it will kill profit margins. My best year as a small business owner was 220 k ; after taxes , truck expensive, commercial ins, warehouse , supplies , payroll and etc. My profit was within a 20 percent margin.

[@joey_bonesjr3230]

Yup. Ive owened a small pizza business for 16 years. Very tough to get it up and running. I did not get a day off for the first five years except major holidays, which are 4. Recently the price of cheese goes up by quite a bit. So im forced to raise the price by a dollar. People shit themselves. They threaten to never buy again. Im like dude, either i raise the price or i shut down. Most people who work 9 to 5 jobs are sheltered and have no idea what capatalism truly is. They just dont know that money is not something you deserve because you do minimal work

[@Crazy-Horse-Tx.]

@@joey_bonesjr3230 : Yes, it is certainly rough. I went years with no days off. It is a love and hate relationship running a small business. I knew a guy who ran a franchise pizza place ; the pizza was good. He had customers but was running it all alone. The fees alone were killing him in the pocket. He shut down. Same as this couple did running a small Mexican restaurant. I give you props for going so long in your business. As for me ; I want to sell . Get as much as I can.

[@joey_bonesjr3230]

@@Crazy-Horse-Tx. yeah i had no choice but to keep the business up and running. I was born in mexico and the only way to protect myself from deportation and eventualy get my citizenship was with a small business. I too am thinking about selling it soon, like in june. I think everyone in this country should be illegal. People should not just be given citizenship because they are born here, they should have to earn it so they understand the true value of this country. I bet if that happened this country would become the empire it once was.

[@TheLT52]

That is a very bad net profit. I was in the quick print business independent not franchise. After 6 years, our bottom line net was $540,000 taxable income. Cost for me to open was about $40K over a 5 year period. A small business should make a minimum of 20% net to the owner for the risk of ownership....minimum. If you invested $1 million you would get around 10-11% a year in the stock market long term. Better than a McDonalds because you do not have the responsibility of a burger shop owner. If you have multiple burger shops, instead have several $$ million in the market at 10-11% each year. Some people think it's cool to own a business, but it's cooler to make a million every 2 years in a non-franchise behemoth IMO.

[@abeldoesit6559]

So it’s a McMafia that kicks up to a clown.

[@markdent4052]

😂😂😂😂😂

[@hollywoodloft6768]

Lol!! That made me chuckle.

[@PhilAVega]

👍😎 just have my money for me.

[@hardcandy7112]

Owners , are robbed every day by the staff he hire to run his business .

[@abeldoesit6559]

Stockton Ca 95206

[@JT-pt5tl]

150k in profit a year is amazing

[@Replicant2600]

Leverage that 1m to buy 4 apartment buildings, duplex’s for 1m each, 20% down. In the short term you might make 60-80k net a year, long term as principle gets paid down you could be making 345k a year after they’re paid off. 6 units x 1200 a year in rents. Or what ever, invest in McDonald’s... :).

[@irisho5027]

Good luck finding an apartment with net rental yields of 8.5% in the US. The average yield is around 4-6%. And with that LTV you should probably expect negative cashflow for the entire duration of the loan, unless you can somehow negotiate a long term (25 years+) loan.

[@Replicant2600]

Iris Ho so, single family or duplex is better for cash flow. I’ve only done single family and duplex, 30 year loans. Each cash flow 800-1600 a month.

[@irisho5027]

@@Replicant2600 How much is the rent? What is your occupancy rate? How much did each unit cost and how much are your expenses? If you have a 30 year loan then it's possible to end up with positive cash flow but banks will normally require you to have a much lower LTV ratio.

[@peanutbutterisfu]

I’ve seen numerous employees bash the owners like they are making a killing. I remember commenting that the owners don’t make a lot but the actual corporation does and the people told me I was wrong. They don’t understand that the owners are making maybe 150-200k and if you can’t make that much owning a business your better off getting a job. You open a business to make good money not give it all away and not for nothing working at McDonald’s is not a career it’s a job for high school students. You can make it into a career if you become the store manager or owner but it’s not meant to be a job for the regular employees to retire from.

[@jahmenj]

“They don’t care if you make money as long as they make money” Sounds like UBER & LYFT 👎🏽 👎🏽👎🏽👎🏽👎🏽

[@kablaam718]

Well. If you don’t make money. You close down shop. I doubt that helps them. It’s more like, they want you to make JUST enough money to stay afloat and happy, but keep them rich.

[@Ar938]

Uber and Lyft aren’t making any money

[@jahmenj]

Snn, As an individual, you’re not staying afloat and not happy. People need to become more creative in developing a skill that can provide service and not solely depend on these thriving multiMillion dollars corporations. I know easily said then done, but you must at least think about it and stop feeling content. That’s what I really mean... Peacej, 🙏🏽🥑🍎🌎✌🏽🦋💚🏀🔑🍇🌦🍓🍆☀️🎁🥝😁🌽🍒🥦😆🥬🎂🍌🥒🥕🧄.....LIFE 😁

[@kablaam718]

jahmen j In a perfect world, fine. There is still a place and a need for janitors, fast food workers etc because us consumers demand it. If everyone was creative and rich and successful, no one would pick up our trash, or drive taxis, or serve us food. Tough reality, but still reality.

[@jahmenj]

Snn, I’m right and so are you....

[@carlavv5302]

It's not a hamburger business, it's a Real State business. MacDonald owns the most expensive corners/locations around the world. When we learn business and money it's a game changer. I hope more people watch this kind of videos.

[@ObsidianParis]

Who else heard « french eyes » ?

[@peterdaniel66]

What people dont realize is that McDonalds is in the real estate business first and foremost. They OWN all the land the franchises sit on making them the Landlord which changes the relationship. If they dont like what the store is doing, they can evict the franchisee and take back the store.

[@mauricecole1196]

You hit the nail on the head.

[@javiervazquez4405]

It ALLL DEPENDS ON LOCATION. The McDonald’s over here Calabasas, CA makes a lot more than those in Texas, Kansas, or Missouri. It’s common fucking sense

[@1stGeorgiaGirl]

Here in the college town within which we live there are 3 locations all owned by the same franchise. All locations are constantly busy, one of which is open 24 hours. College kids here are "Lovin it."

[@HenauderTitzauf]

McDonalds can’t beat our local restaurants in Mt.Airy, NC. They are O’dells Sandwich Shop and The Dairy Center. These two places have been in continuous business since the mid 1950s. I used to work at the Dairy Center, great bosses, great food, great town. Oh, great vlog, thanks for sharing. Oh, both places have curb services!

[@frankgdo3532]

I want to own some McDonalds Frenchfries oh and a few dipping sauce too.

[@kingeddy1645]

The franchise system makes sense if you have millions in the bank. You need at least 10 to make a million dollars. But, even if you have one it's still not worth it. Having to constantly run it is difficult. There are some families that will buy a franchise together to diversify time and money but still, you're better off buying the stock.

[@steveforman6434]

I'm a former owner and retired at 49. We make WAY more than that. Lots of wrong info in this video!!

[@phaedrussmith1949]

How much money did you make per year, Steve?

[@steveforman6434]

@@phaedrussmith1949 , typical operator I think would make 10-15% of sales. Alot depend on the actual sales of your location. As sales rise, fixed costs stay the same, so it becomes premium profit.

[@phaedrussmith1949]

So about twice what the video indicates. That seems to leave a substantial income while having similarly substantial funds to work on recouping the initial $1-2 million investment. I recall reading Kroc's book which stated that McDonald's actually considers itself a property management company where it owns the real estate and then leases it back to the franchisee under the conditions that it is a McDonald's restaurant run, of course, like a McDonald's restaurant. How does that work out when one owns the restaurant?,

[@steveforman6434]

@@phaedrussmith1949 , that $1-2 million is also kind weird. That may be for a new location, but an existing location is typically 5x cash flow. So, if you cash flowed say $300k, then you could potentially get $1.5 million for that store from me. Then I now have to pay off that $1.5 million, so banks may want that paid off over 7 years, so say just over $200k per year (interest is before cash flow so it does not factor in here). So for a number of years, I am making maybe $100k a year salary as I have to pay the banks off. BUT, at the end of 7 years, I have an asset worth $1.5 million (maybe more if I have done a good job and built sales, thus more profit). The whole secret is to work hard, build sales, build profit..........buy more stores........then have an overall company asset of a bunch of millions. I am a Canadian so can't comment on US McDonalds. In Canada, the company is very fair....(tough but fair). If you put in your 60 hours a week and give a shit, then you can retire in 10-20 years with a nice nest egg.

[@phaedrussmith1949]

@@steveforman6434 That was very interesting. Thanks for sharing the information.

[@az_exit1279]

Bottom Line: Regardless of franchise brand, a franchisee makes a net profit of 3-5% of gross sales, that is why it changed from owning one successful franchise, back in the day, to now having to own a 'territory' of 20-30-50 stores or more to be in the game and make a profit. *Corporate always has the upper hand in the deal. **I am a former franchise owner (1983-93)

[@crb4059]

Do you think they do more business per store now than back then? Breakfasts werent much of a prioirty in the 80's for Mcd as it has become since.

[@Blastfence1]

Did she say 6%! The S&P 500 returns about 10% annually! Today Energy Transfer ET has a Dividend of $1.28 (8.01%) AT&T has a Dividend of $1.11 (5.78%) BlackRock Technology Opportunities Fund has a YTD return of 21.33%. McDonald’s Corporation has a dividend of $6.68 (2.47%). And that’s without going to work and the best thing about being a shareholder is the McDonald’s Corporation is not going to call ☎️ you and tell you the toilet 🚽 in the ladies bathroom is clogged up and you need to come in! Now if you are buying the business as a learning experience and you have the cash 💸 to just throw at it and you have a couple of people in your family that need a job and you want to do this I would do it!

[@heru-deshet359]

Better to open your own special burger joint with really delicious food.

[@philipmullins6235]

The reason McDonald's keep making money is because people keep going there when there are better options McDonald's locate their stores in the best positions , they spend lots of money on the store design , they advertise a lot , they pay low wages , they mark their products up about 500% to 1000% , their cup of soft drink for $2 would cost them about 20 cents in ingredients and their $2.59 fries would cost about 25 cents in potato , their products are mostly out of the deep freeze even their toasted sandwiches come out of the freezer . A lot of people in the modern world are obese because the cheapest products like white sugar and white flour make up a lot of their diet and if you travel to third world countries now , you will find lots of obese because they have changed their diet to multi-national fast food products .

[@JamesPhillipsOfficial]

Shut up and make some money

[@MultiBillionHeir]

Great comment... it’s a shame

[@nickcarroll5868]

Mx Donald’s is so valuable because they have the biggest real estate portfolio in the world.

[@andye5851]

If I'm not mistaken it pales in comparison to the catholic church.

[@Erdei1980]

@@andye5851 lol

[@andye5851]

Its estimated that they own 170,000,000+ acres

[@twsinc7662]

$150,000 profit a year.. yeah right. I know the guy who owns all the McDonald's in my area and he's definitely making more than that.

[@TheKdizzle1971]

4:10 looks like Ronald went to Subway for lunch

[@davemustaki134]

I miss the McDonald's from the 90s to 2000 after that McDonald's has never tasted the same for me in Australia anyway

[@sirsaint88]

Warning: Don't watch this if you're really hungry. Like its after lunch and you haven't eaten anything yet all day.

[@bluegillmich]

Glad I bought stock, my wife loves that place.

[@sticustom]

I don’t know where you got the figure but my local Maccas, according to the owner, said his profit per week was $80K and yes that was after expenses.

[@Its_andrewdude]

sticustom ehh I’m calling bs on those numbers. He’s claiming he makes over $4,000,000 +/ year net from one location? The average revenue of a McDonalds is 2.7 mil/ year or $7,300/ day. His store would have to be doing $22 mill/ yr. or $61,000/ day to hit those numbers, assuming all other variables(taxes, franchise fee, turnover, payroll, maintenance) are relatively the same.

[@sticustom]

Andrew Dudenhefer call BS all you like. It came from the owner and I asked the manager and he confirmed it as well. I know of another store making over $2 million a year and that was back in the early 80’s. I knew the owner well and yes that was one store. Remember this was at a time there wasn’t a store every few miles. They are on every corner now.

[@Its_andrewdude]

sticustom I don’t think you’re lying about it or anything. I guess I’m just having a hard time wrapping my head around how one store could be outperforming the “average” that significantly. For instance I worked for a restaurant in a prime location in downtown New Orleans and our total revenue wouldn’t have been close to those numbers. Our average revenue/ week was $100,000 and this guys total net income of one McDonalds would be 80% of that. That’s pretty incredible if accurate and may be one of the best investments ever considering he would have tripled his money in year one. Definitely don’t think that is the norm.

[@philpbahn5928]

@@sticustomI think you are confusing revenue (sales) with net profit.

[@sticustom]

@@philpbahn5928 no. After sales, wages, stock etc his profit was as I said. That came from the owner. He doesn’t own it anymore, Head office bought it and drove it into a cesspit. It went from clean and hot food to mismanagement, cold food, mess up orders and filthy. Yet people still go there.

[@Koolazzmike]

Living in upstate New York here, I worked at McDonald's when I was a teenager. This hillbilly guy from Tennessee came and bought our location and 2 others. He got rid of our managers he inherited. Hired a woman from Burger King who was clueless on how to run McDonald's. All she did was ask everyone questions because she didn't know. The hillbilly owner tried to fix everything that broke on his own because he didn't want to pay anyone outside to do it. Our bun toaster was always down, and he had a screwdriver trying to fix the damn thing. He was the cheapest SOB I've ever seen. Meanwhile the clueless manager he hired always cried because she didn't have a clue. I ended up leaving because I didn't like the new overhaul. A few years later, the owner sold the McDonald's and took his ass back to Tennessee

[@nunuseberry409]

Billionaire franchise! Hesitant to give employees an raise!

[@gregorythomas5804]

The problem, is not so much the owners - to the extent they respect their employees. The problem is the average restaurant has a net operating income of 6%. While this leaves some room for pay increases without increasing menu prices, there isn't much. For years I've been saying the company should rejig their agreements as the 15% in rent and services + 5% in compulsory marketing fees is a big chunk and even reallocating 1/4 of that to pay increases for front-line workers and supervisors would go a long way to improving their lives.

[@yell0wberry]

Once New York City raised the minimum wage to $15 an hour, a full-time worker all of the sudden became a bunch of part-time workers

[@broken414_]

The problem is, even if they did give them a raise,hell even DOUBLED IT. People like you will always complain till the end of time and your broke kids will do same, just like your broke parents did and their parents. No matter how much more you get paid. Itll never be enough.

[@asimhusain8087]

@@broken414_ what is everyone talking about in 1993 in June the store manager said we made 93000 in profit we made 4.25 an hour.

[@marksherman1887]

But the product has gotten soooo bad. In the 70's, Mom took us for a treat. Warm and tasty burgers. Now, cold coagulated crap and the staff does NOT care. Same has happened with BK which was my fave. They have completely abandoned any effort at customer satisfaction and left the door open to competitors that deliver a better product and experience. I rarely go the Rotten Ronnie's unless I have absolutely no other options!

[@rsotolongo35]

13 years to break even at a 2million start up.. no thank you.

[@ronbonora7872]

@Danny ah I don't think so! LOL

[@jpb4264]

Buy dividend paying stocks.

[@rsotolongo35]

@@jpb4264 I forgot about this comment lmao

[@stevenheminger7882]

They can't be doing too bad, everywhere I go even over seas a Mc Donald's is easy to find

[@jamesharber7820]

The cartoon character at the end has the demented thinking of a Union “man”.

[@damink7497]

Hadn't been to McDonald's in a while went there today 5 October 2020 got a Bacon egg and cheese biscuit and a sausage mcmuffin the price was 8.25 that is the last time i will go to mcdollars probably ever what a fu..ing ripoff!!! They use to be alot more affordable. So long Mickey d's its been real

[@theTruthLifeNWay]

This is like Casino (1995) but set in a Fast Food Joint

[@heru-deshet359]

in 1994 a McDonald's franchise was 400K. and there was a 100 plus k pure profit per year. That was great money back then. You're crazy to get into one now.

[@madness03]

I was waiting for the scene in Scarface where they ran the cash through the counter and tony says it’s not right , count it again

[@detroitbloodrunsinme8194]

Memorabilia Madness M&M well they did do the casino scene where the skim money off the top lol

[@GoldenBridgeVEVO]

If you make $150,000 a year, as a franchise owner i am sure you have to work at least 80-100 hours per week to operate and manage the restaurant. There fore you must have worked 4160-5200 hours per year . Your wage range from $28 to $36 per hour. If you dint want to manage the restaurant and plan to hire some one then assume they can work 80-100 hours perweek and willing to accept less than $28 per hours

[@ilikemath6834]

Wait... the owner nets $150,000. The owner also uses the business to pay for his salary or $100,000+, all travel expenses, and other necessities they desire. Basically they use it to pay for all living expenses, pay themselves a salary and then are still left with a profit to reinvest or open another one and earn $300,000 profit. Investing $1.5M and having a revenue return of $2M in the first year is amazing. How is this bad?

[@riskbusin3ss]

You need to recheck ur numbers mate

[@ilikemath6834]

Hustle Boy elaborate

[@ilikemath6834]

riskbusin3ss elaborate

[@Lifewithkwame1]

I Like Math the Branch makes 2.7 mil you make 150k after you pay all your fees and payroll. To make your initial investment back it will take 10 plus years do to cost of living going up.

[@ilikemath6834]

KRS Sports Talk And?? That’s called investment. I never said it’ll take forever to pay it off. I said it’s returning a profit. You set your loans and mortgage for the business and pay that off as well. All fees, mortgage, expenses, salaries (including yours), travel expense, royalties, etc are calculated for the year and after all payments are made you are left with $150,000. You can use that to put towards your current McD’s and decrease any future interest on the mortgage, or just put it into opening another location. All the interest payments are factored in the expenses for the year. You make the minimum payments needed and get your profits. Of course that’s good!

[@johnsmith1953x]

*My advice: Do not go into ANY Franchise* PERIOD.

[@kmusic160]

150k net profit?.. I'm good...I'd rather save that money and invest somewhere else.

[@omurfaruk1474]

A nice presentation on marketing has been made. I like this video very much

[@brendanschwartz1929]

Notice how at 4:10 Ronald McDonald is holding a Subway cup. 🤣🤣🤣🤣🤣🤣🤣🤣

[@abdullahal-shimri3091]

I knew a old guy who owned 350 burger kings. His managers took care of business while he lived in a yacht in the Caribbean.

[@pearlyn1021]

I really want to be an owner one day! Speaking into existence 🙏🏽🙌🏽

[@ucheokoroafor8273]

Success to you

[@rollotomassi6374]

McDonalds is a real estate company that gets the franchisee pay for the property, building and all the incidentals…..and if you are ever in default they get the store and location back, and the company gets the location back to resell to someone else, and it starts all over…..

[@realitybites2035]

there are easier ways to get a 7% return on investment

[@TOTO_209]

Like what?

[@realitybites2035]

@@TOTO_209 a bar in the philippines or thailand haha

[@Sesamestreet9080]

But the cash flow

[@rochester3]

@Acoltsnut29 spy index fun returns over 10% a year without no effort on your part what so ever

[@d33763]

And its 7% in a low growth super saturated market with fierce competition coming from the fast casual sector. Also if the existing franchisees, which are established for decades and have 20+ stores at the best locations with greater scale and logistics are hitting 7%, what would the new franchisee with only 1 or 2 stores be hitting?

[@howtogrowyourrestaurantbus6349]

Franchise a good option for less know-how of the industry. Setting up your restaurant is a better approach to showcase your expertise and generate money.

[@tizodd6]

@4:07 Ronald sporting a Subway cup...

[@JoseCruz-ol6qb]

tizodd6 facts sitting in a pool drinking subway soda

[@1southernsun]

Have a friend who own’s McDonalds. He’s capped at 5 stores. Inherited from father. His sister has 5 as well. They aren’t hurting at all.

[@NoName-vy8vu]

Thanks. How much do you think he makes? I'm researching with a view to doing it myself, it's hard to find hard evidence though. I think your friend could potentially sell the lower profit stores and purchase higher profit stores if he's capped at 5 btw.

[@coopsnz1]

Probably has milion dollars of debt

[@WealthbuilderzTV]

I would like to own a franchise but I wouldn’t rock with McDonald’s though.

[@william-uc2oy]

Congrats. Yes long hours and a grind. But you were on the plus side the first week. That should spur you on. Disappointment would have been being in the red the first week. I wish you success going forward. Slow and steady progress will happen for you.

[@MrAllan9]

I stopped eating at the big M many years ago, it's like a slow poison.

[@chuckmaddison2924]

So did I. Every day after I had McDonald's I would get serious screaming jets. : (

[@janehyden1652]

I NEV3R EVER EAT HAMBURGERS --BEEN LIKE THAT FROM A TEENAGER---IF U SAW HOW THEY DO THOSE COWS U WOULDNT EITHER!