McDonald's
Five things to know first
What you pay
Investment by format
Recurring fee extraction
Revenue data quality
Is it growing?
Openings vs. closures
What you give up
No exclusive territory. McDonald's can open or approve a new location near you at any time, with no obligation to consult or compensate.
Open 7 days, 7am–11pm minimum. McDonald's can change the system — manuals, equipment, technology — at any time, with no cap on cost or frequency.
When you sell, McDonald's gets 20 days' notice and 10 days to match. Your royalty rate resets to current on transfer, and you remain liable for the full original term even after selling.
If you are terminated, McDonald's can buy your restaurant at fair market value — but pays nothing for goodwill or brand value. A $5,000 judgment or 30 days overdue can trigger default.
Approved suppliers and approved products only. The tech stack alone runs ~$10.5K/year in mandatory fees across 22 line items.
After you leave, the non-compete covers 18 months / 10 miles and extends to your landlord relationships. McDonald's can recover its legal fees from you, but not the reverse.
State-by-state overrides
Items 1, 5, 6, 7, 11 modified for the California Fast Food Act (AB 1228). Franchisee solely responsible for AB 1228 compliance. Franchisor provides no related training, assistance, or fee adjustment.
Why it matters — California operators absorb the entire AB 1228 labor-cost increase without subsidy. Materially raises Item 19 pro-forma downside for CA locations.
Item 17 anti-waiver: no questionnaire or acknowledgement signed at commencement can waive Hawaii Franchise Investment Law claims, including fraud in the inducement.
Why it matters — Preserves the right to bring fraud-in-inducement claims regardless of any 'nothing was promised' acknowledgement — a meaningful exception to the standard release regime.
Releases required for renewal/transfer do not apply to Maryland Franchise Registration and Disclosure Law claims. MD-law claims may be brought in Maryland subject to arbitration. 3-year limitations period for MD-law claims after grant.
Why it matters — Statutory rights survive the otherwise-strict Illinois venue and release regime, but the 3-year clock is shorter than the 20-year FA term.
Minn. Stat. 80C.14 applies: 90 days' notice of termination, 60 days to cure, 180 days' notice for non-renewal, and consent to transfer cannot be unreasonably withheld. Item 13 adds franchisor trademark defense.
Why it matters — Significantly stronger due-process protection than the default — structured cure rights, 6-month non-renewal notice, and a reasonableness standard on transfer denials.
Post-term non-compete covenants are generally unenforceable under North Dakota law. North Dakota law governs ND Franchise Investment Law claims.
Why it matters — The single most economically valuable override — restores the right to operate any future QSR business in North Dakota after term, neutralizing the default 18-month / 10-mile post-term non-compete.
Washington Franchise Investment Protection Act prevails over inconsistent FA/FDD provisions. Per a Washington AOD, no-hire/no-poach provisions are removed from the form FA, will not be enforced in existing FAs, and franchisees must be notified.
Why it matters — Only state with on-record AG enforcement against McDonald's no-poach provisions. Strongly protects employee mobility between WA McDonald's restaurants.