Franchise Cost Breakdown
How Much Does a McDonald's Franchise Cost in Canada (2026)?
Thinking about investing in a McDonald's franchise? Here is the complete cost breakdown including franchise fees, total investment, royalties, and what McDonald's looks for in a location. Item 19 tells you what a franchise earns. ScoreVet tells you if your location can match it.
Investment Breakdown
| Item | Amount |
|---|---|
| Franchise Fee | $45K |
| Total Investment | $700K – $1.5M |
| Royalty Rate | 5% |
| Advertising Fund | 4% |
| Break-Even | ~60 months |
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What McDonald's Looks For in a Location
- \u2713Very high traffic intersection or highway service area
- \u2713Drive-through is mandatory for new builds
- \u2713Minimum 4,000 sq ft with parking for 30+ vehicles
- \u2713Population density of 10,000+ within 3km radius
Key Facts About McDonald's Franchising
McDonald's has approximately 1,400 restaurants in Canada.
Most new franchisees are approved from within the existing operator network.
McDonald's owns or leases the property — franchisees pay rent as a percentage of sales.
Total investment includes equipment, signage, seating, and initial inventory.
Operators must complete 9–18 months of training before opening.
Compare Other Franchises at This Budget
Subway
High foot traffic near transit hubs or food courts
$100K \u2013 $250K
8% royalty
Pizza Pizza
Dense residential area with delivery radius of 3km+
$200K \u2013 $350K
6% royalty
Domino's
Residential area with strong delivery demand
$150K \u2013 $350K
5.5% royalty
Famoso
Affluent neighbourhood with quality-gap in pizza market
$350K \u2013 $600K
5% royalty
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Data sourced from public Franchise Disclosure Documents (FDD), the Canadian Franchise Association (CFA), and industry averages. Investment figures are estimates and may vary by location and market conditions. This is not financial advice. Always review the FDD with a franchise lawyer before signing.