- McDonald’s Australia looks for franchisees with substantial unencumbered funds, reported at about $1.5 million or more, and a 20 year commitment.
- McDonald’s selects the site and owns or leases the property, so rent paid to McDonald’s is one of the largest costs in the business.
- Most new franchisees buy an existing restaurant, so the review focuses on that restaurant’s sales, labour and reinvestment obligations.
McDonald’s opened in Australia in 1971 and now has more than 1,000 restaurants, the large majority run by local franchisees. It is one of the hardest franchises in the country to get into, and one of the most structured once you are in.
This guide sets out what is publicly reported about becoming a McDonald’s franchisee in Australia, how the economics of a restaurant work, and what we would test before you commit.
McDonald’s franchise at a glance
| In Australia since | 1971 |
|---|---|
| Restaurants | More than 1,000 nationally, most franchised (industry reporting) |
| Funds required | About $1.5 million or more in unencumbered funds (third-party reporting; confirm with McDonald’s) |
| Term | Typically 20 years for a new restaurant |
| Property | McDonald’s selects the site and owns or leases the land and building |
| Ongoing fees | Service fee, rent and marketing contributions, reported as percentages of sales |
Figures come from the public sources listed at the end of this guide and can change. Treat them as a starting point and confirm current numbers in the franchise disclosure document.
How the McDonald’s model works financially
A McDonald’s franchisee owns the restaurant operation, including equipment and decor, while McDonald’s controls the real estate. That means the franchisee pays rent to McDonald’s, often calculated as a percentage of sales, as well as a service fee and contributions to national marketing. Third-party reporting puts the service fee at around 4% of sales, with marketing a further few percent.
Labour is the other big cost. Restaurants trade long hours, often 24 hours, so award penalty rates have a large effect on profit. Reinvestment is part of the deal too: franchisees are expected to fund refurbishments and equipment upgrades over the term.
The numbers to test before you buy a McDonald’s franchise
- Sales history and the trend in transaction counts, not just average spend.
- Rent as a percentage of sales and how it is calculated under the lease from McDonald’s.
- Labour cost as a share of sales, including late night and weekend penalty rates.
- Scheduled refurbishment or rebuild obligations during the remaining term.
- Remaining franchise term and the conditions for a new term.
- Working capital needs and how much debt the purchase price requires.
Buying an existing McDonald’s restaurant
Most people enter the system by buying an existing restaurant from a retiring or exiting franchisee, with McDonald’s approving the buyer. The price is usually driven by the restaurant’s cash flow, but the real question is what that cash flow looks like after the reinvestment you will be required to make. Ask for several years of profit and loss statements, the capital expenditure plan and the term remaining.
How Franchise Co. can help with a McDonald’s purchase
We work with buyers and owners of franchise businesses across Australia. For a McDonald’s restaurant we can:
- Review the numbers before you sign. Our business due diligence starts from $2,000 + GST and tests sales trends, rent, labour costs and reinvestment obligations.
- Set up the structure and the books. Entity choice, GST, payroll and a chart of accounts that tracks labour, rent and service fees by restaurant. See accounting and tax and bookkeeping, BAS and payroll.
- Check your franchise fees. We reconcile service fees, rent and marketing contributions to the sales they’re calculated on. See royalties and franchise fees.
- Plan the next restaurant. If a second site is on the cards, we model the cash flow and funding first. See multi-site reporting.
McDonald’s franchise FAQs
How much does a McDonald’s franchise cost in Australia?
Third-party reporting puts the total investment for a new restaurant at roughly $1.2 million to $2.6 million, with about $1.5 million or more in unencumbered funds needed to be considered. McDonald’s confirms its current requirements during the application process.
Does McDonald’s own the property?
Yes. McDonald’s selects sites and owns or leases the land and building, and the franchisee pays rent to McDonald’s.
How long is a McDonald’s franchise term?
A new restaurant franchise typically runs for 20 years. An existing restaurant is usually bought for the remaining term.
Can you help me review a McDonald’s restaurant purchase?
Yes. We review sales, labour, rent and the reinvestment plan as part of our business due diligence, which starts from $2,000 + GST.
Are there McDonald’s franchises for sale?
Yes, existing McDonald’s businesses come up for sale from time to time. Look for resale listings from the franchisor, business brokers and sites such as SEEK Business. Any purchase needs the franchisor’s consent, and you should receive the disclosure document and franchise agreement at least 14 days before the transfer is approved. Ask for three years of accounts, sales reports and the lease, and check how long is left on the franchise term.
Franchise Co. is an independent accounting practice. We aren’t affiliated with, endorsed by or connected to McDonald’s or McDonald’s Australia. McDonald’s is a trademark of its owner and is used here only to identify the brand this guide discusses.
Sources and further reading
- McDonald’s franchising (New Zealand preliminary information)
- RosterElf: cost to open a McDonald’s in Australia
- ACCC: Franchise disclosure document
Sources checked November 2026. Franchise costs and fees change. Confirm current figures with the franchisor before acting.
This guide is general information for people considering a franchise in Australia. It doesn’t take your circumstances into account and isn’t personal tax, legal or financial advice.
Talk it through
Every franchise is different. Ask us how this applies to yours.
