McDonald's vs Krystal Restaurants Franchise Comparison

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

Start-Up Costs and Fees
 
McDonald's Franchise
Krystal Restaurants Franchise
Investment $1,314,500 - $2,306,500$900,000 - $1,300,000
Franchise Fee $45,000$32,500
Royalty Fee 4%4.5%
Advertising Fee 4%+-
Year Founded 19551932
Year Franchised 19551990
Term Of Agreement 20 years20 years
Term Of Agreement 20 years20 years
Renewal Fee $45K$8.1K


Business Experience Requirements
 
McDonald's Franchise
Krystal Restaurants Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills

  • Industry experience
  • General business experience
    		•

    Financing Options
     
    McDonald's Franchise
    Krystal Restaurants 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/No
    Payroll No/NoNo/No

    Training & Support
     
    McDonald's Franchise
    Krystal Restaurants Franchise
    Training On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant -
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives
    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, Regional advertising
    Operations 82% of all franchisees own more than one unit

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

    		 Franchisees required to buy multiple units/master licenses; 94% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 30

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

    Expansion Plans
     
    McDonald's Franchise
    Krystal Restaurants Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion YesNo

    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 Krystal Restaurants

    The Krystal Company is the oldest quick service restaurant chain in the South and the second oldest in the United States. The Chattanooga-based company currently has more than 450 restaurants in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Texas and Virginia. Founded in 1932, Krystal restaurants have become more than sparkling-clean eateries where friendly employees serve up fresh, delicious food. Krystal has become a cultural icon and an experience that virtually every man, woman and child in the South has shared. Nearly everyone in the region has a Krystal memory. The Krystal brand, and the great food, service, value and setting which it represents, has taken a prominent place in the South's cultural landscape.