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Below is an in-depth analysis and side-by-side comparison of McDonald's vs Johnny Rockets including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $1,314,500 - $2,306,500 | $581,000 - $877,000 |
Franchise Fee | $45,000 | $49,000 |
Royalty Fee | 4% | 5% |
Advertising Fee | 4%+ | - |
Year Founded | 1955 | 1986 |
Year Franchised | 1955 | 1987 |
Term Of Agreement | 20 years | 10 years w/two 5-year options |
Term Of Agreement | 20 years | 10 years w/two 5-year options |
Renewal Fee | $45K | - |
Business Experience Requirements |
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Experience | You and/or a business partner(s) must have at least two years restaurant owner/operator experience. You and/or a business partner(s) must have a net worth of $500 thousand per unit, and available liquid capital of $200 thousand per unit, or more, (net worth of $1.5 million per unit, and available liquid capital of $500 thousand per unit, or more, outside of the U.S.), in order to qualify for development of up to five units. Development of six units or more will be considered on a case by case basis, pending your net worth and available liquid capital. |
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Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/No |
Start-up Costs | No/No | No/No |
Equipment | No/Yes | No/No |
Inventory | No/No | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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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 | Meetings, Grand opening, Field operations/evaluations |
Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | National media, 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; 95% of all franchisees own more than one unit Number of employees needed to run franchised unit: 48 - 53
Absentee ownership of franchise is NOT allowed. (98% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | No |
International Expansion | Yes | Yes |