Why You Will Go Broke Owning a McDonalds Franchise

The golden arches of McDonald's can be seen across the globe in almost every small town, and big city alike. Owning a McDonald's franchise seems like a great investment, until you find out about all the secret costs that come with owning the most well-known fast-food franchise on the planet! What's McDonald's hiding? Find out in today's new video.

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All videos are based on publicly available information unless otherwise noted.

[michaeloberg]

The owner of the McDs I worked at bought his first store when he was only 38. Using an inheritance he bought 5 more stores and retired at age 50, selling all his stores and living very comfortably with his future secure.

[MondoCool]

My step father franchised a McDonalds for about a decade. He had worked for the company since the 80s, bought the store in 2005. In his case, they wanted to see at least a million in liquid assets from him (vs the min. $500, 000 said in the video). He worked at least 16 hours a day 5-6 days a week. He worked so much, one night he began to tear up thinking my mother has finally done with him because he spent so much time at the store. I'd regularly see him working the register or running food outside when I'd visit. HQ constantly gave him nonsense. After less than a year, they demanded he tear down the building and do a complete rebuild. Paying the fee turned out to be cheaper, so that's what he did for 9ish years. He did well financially once the store was paid off, but that took around 7 years.

[rockthered]

I had a history teacher in high school whose wife owned a McDonald's and my teacher wore this gigantic McDonald's ring. The size and style of the ring would've made you think that McDonald's had it's own football team and they won the Superbowl!

[picklerix]

I worked for a rich guy who owned 5 McDonalds stores. His first restaurant was his most successful and profitable. Our store did well but a disgruntled former employee broke into the store and trashed it. We also had several break-ins and burglaries. One assistant manager disappeared with a large bank deposit. Finally, the owner told the corporation that he wasn’t making the return that he expected for his investment. McDonalds took over all five stores and the former owner bought a couple Shell gas stations that were more profitable.

[fubarexress]

I was a district manager for 14 McDonald’s. I made 220 K after it was all said and done. I had years I made more than the owners. But they did have many 4+ mil profit years. I would say they had at least 3 stores that lost money. Most made 10% at best. A few did insane numbers.

[jermm]

“Mcdonalds like their things standardized”
Take it from an employee, they require u to have an ice cream machine that is from the 80’s

[robbrie]

The overhead and administrative costs are challenging for a franchisee to own only a single restaurant. Having several locations within the same metro area are when the profits roll in.

[taylorsmith]

I worked for Mcds for 2 years as my first job at 16 while at college. My franchise owner owed most of the stores in my county (Hertfordshire). Most down to earth guy I’ve ever met. Would often come into my store and find him working the tills, or on the line. Bumped into him a few weeks ago, he sold up a few months ago (must be in late 40s, early 50s). Going by the Bentley he got into, I’m assuming his not living on to tight of a budget.

[mrfugazi]

Thanks for the advice buddy, I’ll have to remember this when I end up winning the lottery, the last I’ll buy is a Macdonalds restaurant, not that I’d buy one anyway but I’ll definitely know not to buy one now.

[OfentseMwaseFilms]

Most franchises just set their stores on fire and claim from insurance to do all those upgrades!😂 I’ve seen it many times.

[EndProhibition]

Well a franchise might not be a good investment, but their stocks are definitely worth considering. Their stock has strong growth, and decent dividends too. Stocks are a lot less effort and maintenance and capital expense for entry than a franchise is.

[Boglim_Brewer]

I remember when the Kiosks came out, worst part of the job for me. Manager made me try to convince customers to use it rather then let me bring them to the register, some people didn't like it and preferred talking to an actual human being rather then work the screen. But it wasn't too hard, at the end of the day it was enjoyable to help customers or take their orders manually.

[razer]

Why Owning a McDonald's Restaraunt Will Leave Your Ice Cream Machine Broken

[walnutinvesting]

I'd rather own stock in McDonalds and collect the dividends. Not to mention that dividend has been raised consistantly for decades now. I'll enjoy the cashflow without the headaches lol

[TheJimprez]

I work in restaurants. I'd NEVER fork over for a franchise. It's like having a partner that tells you how to run your business, takes 1/2 of your profits and lets everyone else work for it.
The mistake of ANY other franchise owner or a bad management team at head-office can destroy you in a minute, even if you run your show the right way.
It's for people that want a restaurant, but know NOTHING about them.

[kellykerr]

My first dream as a child is that I would be a grocery store. I was too young to understand the difference between the difference of owning something and being something. Obviously I could not be a store. I was just always hungry. My parents gave me plenty of food, but I was still always hungry and super thin. Don’t have that problem.

[hunterkiller]

That's why I strongly believe McDonald's is a money laundry front for killer clowns. How else do they stay up float? By Birdie the Early Bird? Hold up, that makes more sense.

[kevd]

With about 82% of all locations owned by franchisees and a relatively low closure rate (many locations being around for decades), it seems that at least most franchisees do not "go broke".

[thomasworrilow]

What people don't realize is, McDonald's may be a fast food business, but McDonald's is a real estate business 1st! McDonald's owns the most prime real estate in the USA.

[lynnleigha]

I worked at McDonald's when I was 18 and we had this "mchappy" contest with like four other locations, people would vote for the happiest worker, and I won, lol! I know, big achievement there, but hey I had fun and won some cool prizes