Burger King vs McDonald's Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Burger King vs McDonald's including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Burger King Franchise
McDonald's Franchise
Investment $333,100 - $3,398,600$1,314,500 - $2,306,500
Franchise Fee $50,000$45,000
Royalty Fee 4.5%4%
Advertising Fee 4%4%+
Year Founded 19541955
Year Franchised 19611955
Term Of Agreement 20 years20 years
Term Of Agreement 20 years20 years
Renewal Fee $50K$45K


Business Experience Requirements
 
Burger King Franchise
McDonald's Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills

  • Industry experience
  • General business experience
  • Marketing skills
    		•

    Financing Options
     
    Burger King Franchise
    McDonald's Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/NoNo/No
    Start-up Costs No/NoNo/No
    Equipment No/NoNo/Yes
    Inventory No/NoNo/No
    Receivables No/NoNo/No
    Payroll No/NoNo/No

    Training & Support
     
    Burger King Franchise
    McDonald's Franchise
    Training Before the opening of the Restaurant, franchisees must successfully complete the franchisor's training program. The training program is held in Miami, Florida or other locations specified by the franchisor. In-Restaurant Training will be held in various Restaurant locations that have been authorized as Training Restaurants. The franchisor may require additional training programs for individual Owner/Operators or Managing Directors to implement current operations, standards, and procedures and to facilitate the growth and changes of the franchisee. The franchisor also makes available and sometimes requires periodic workshops and seminars for managers, which include management courses and updating of operational skills. The franchisor will provide Pre-opening and Restaurant opening assistance as it deems appropriate. The franchisor also provides continuing operations training programs, which franchisees (as an Operating Partner, Managing Director, Director of Operations, or Managing Owner, as applicable) may be required to attend. For certain training courses, franchisees must pay a course or materials fee to the franchisor or third parties. The franchisor may make changes and revisions to the training program, locations or materials at any time. On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant
    Support Meetings, Toll-free phone line, Grand opening, Security/safety procedures, Field operations/evaluationsPurchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software
    Marketing Co-op advertising, National media, Regional advertisingCo-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app
    Operations - 82% of all franchisees own more than one unit

    Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

    Expansion Plans
     
    Burger King Franchise
    McDonald's Franchise
    US Expansion -Yes
    Canada Expansion NoNo
    International Expansion YesYes

    Company Overviews

    About Burger King

    In 1954, James McLamore and David Edgerton opened the first Burger King restaurant in Miami; selling 18 cent broiled hamburgers and milkshakes. Three years later, the company's signature Whopper was introduced, selling for 37 cents a piece. Today Burger King restaurants serve chicken nuggets, salads, a breakfast menu and kids meals. In 1998, the company opened its 10,000th location in Sydney, Australia.

    The franchise granted can be operated at one of three locations and facility types:
    1. Institutional Locations: “Institutional locations” include government buildings and facilities, medical facilities, airports, train and bus stations, sports facilities, factories, corporate campuses, turnpikes, limited access toll roads, theme parks, zoos and educational facilities.
    2. Traditional Burger King Restaurant Facility: A self-contained, full size Burger King Restaurant which is located and operated on a site as a freestanding building or within another building structure such as a shopping mall. A Traditional Burger King Restaurant does not share any common areas with any other businesses and serves the standard approved menu for Burger King Restaurants.
    3. Non-Traditional Burger King Facility: A Burger King Restaurant may be located at a site which includes other businesses, such as retail, food service, gas stations, convenience stores, other franchised businesses or restaurants or other similar facilities.
    "Top    ""

    #37 in Canada's top franchises.



    About McDonald's

    Ray Kroc, a milkshake mixer salesman, ventured to California in 1954 to visit McDonald's hamburger stand, where he heard they were running eight mixers at once. Kroc was impressed by how rapidly customers were served and, seeing an opportunity to sell many more milkshake machines, encouraged brothers Dick and Mac McDonald to open a chain of their restaurants. Kroc became their business partner and opened the first McDonald's in Des Plaines, Illinois in 1955.
    McDonald's brand is in 122 countries around the world. Thirty thousand locations serve 51 million customers each day. More than 70 percent of McDonald's restaurants around the world are owned and operated by independent local business people. Most standalone McDonald's restaurants offer both counter and drive-through service, with indoor and sometimes outdoor seating. The Drive-Thru, Auto-Mac, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the former two steps are frequently combined. In some countries "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service.


    "Top   ""  "Entrepreneur

      "franchiserankingscom"                                                                                                                         
    #7 on Franchise Rankings.com                                                                                                                                                            
    #3 in Canada's top franchises.
    #3 in Franchise 500 for 2020
    #11 in Franchise 500 for 2021