Burger King vs McDonald's Franchise Cost 2026
Burger King runs $1.9M–$3.3M. McDonald's runs $1.3M–$2.3M. The gap at midpoint: $757K.
Burger King
$1.9M–$3.3M
total investment
Investment Difference
$757K
McDonald's costs less
McDonald's
$1.3M–$2.3M
total investment
Cost Breakdown
| Category | Burger King | McDonald's | Lower Cost |
|---|---|---|---|
| Total Investment | $1.9M–$3.3M | $1.3M–$2.3M | McDonald's |
| Franchise Fee | $50,000 | $45,000 | McDonald's |
| Royalty Rate | 4.5% | 4.0% | McDonald's |
| Ad Fund Fee | 4.0% | 4.0% | Burger King |
| Net Worth Required | $1.5M | $500K | McDonald's |
| Liquid Capital | $500K | $500K | Burger King |
| Est. Break-Even | 52.4 yr | 14.1 yr | McDonald's |
Burger King Profile
- Category
- food
- Total Investment
- $1.9M–$3.3M
- Franchise Fee
- $50,000
- Royalty
- 4.5%
- Est. Annual Revenue
- $1.4M
McDonald's Profile
- Category
- food
- Total Investment
- $1.3M–$2.3M
- Franchise Fee
- $45,000
- Royalty
- 4.0%
- Est. Annual Revenue
- $3.2M
Bottom Line
McDonald's costs $757K less to open at the midpoint. That difference goes toward working capital or a second location. McDonald's also wins on royalty rate.