McDonald's vs Charleys Philly Steaks Franchise Comparison

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

Start-Up Costs and Fees
 
McDonald's Franchise
Charleys Philly Steaks Franchise
Investment $1,314,500 - $2,306,500$253,231 - $637,568
Franchise Fee $45,000$24,500
Royalty Fee 4%6%
Advertising Fee 4%+0.25%
Year Founded 19551986
Year Franchised 19551991
Term Of Agreement 20 years10 years
Term Of Agreement 20 years10 years
Renewal Fee $45K$5K


Business Experience Requirements
 
McDonald's Franchise
Charleys Philly Steaks Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills

  • General business experience
    		•

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

    Training & Support
     
    McDonald's Franchise
    Charleys Philly Steaks Franchise
    Training On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant On-The-Job Training: 120 hours Classroom Training: 60 hours
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
    Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app Co-op advertising, Ad slicks
    Operations 82% of all franchisees own more than one unit

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

    Number of employees needed to run franchised unit: 20

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

    Expansion Plans
     
    McDonald's Franchise
    Charleys Philly Steaks Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion YesYes

    Company Overviews

    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










    About Charleys Philly Steaks

    Visits to his relatives near Philadelphia inspired Charley Shin's entrepreneurial spirit, and he saw his future in cheesesteak sandwiches. In 1986, Shin opened his first Charley's Steakery at Ohio State University. The then-22-year-old's restaurant became an instant hit with professors and students. Since then Shin has expanded to locations nationwide. In 1999, he was named Entrepreneur of the Year by Ernst & Young.

    The #1 Cheesesteak in the World

    The total investment necessary to begin operation of CPS Restaurant is $253,231 to $570,540 (excluding real estate and related costs). This includes $24,500 that must be paid to the franchisor.
    The total investment necessary to begin operation of a CPSC Restaurant is $458,996 to $637,568 (excluding real estate and related costs). This includes $24,500 that must be paid to the franchisor.

    Veteran Incentives   50% off franchise fee

    ""  "Entrepreneur
    #126 in Franchise 500 for 2020.
    #294 in Franchise 500 for 2021.