McDonald's vs Burger Hut Franchise Comparison

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

Start-Up Costs and Fees
 
McDonald's Franchise
Burger Hut Franchise
Investment $1,314,500 - $2,306,500$376,092 - And Up
Franchise Fee $45,000N/A
Royalty Fee 4%4.5%
Advertising Fee 4%+-
Year Founded 19551978
Year Franchised 19552007
Term Of Agreement 20 years-
Term Of Agreement 20 years-
Renewal Fee $45K-


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

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

    Training & Support
     
    McDonald's Franchise
    Burger Hut 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 -
    Marketing Co-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
     
    McDonald's Franchise
    Burger Hut Franchise
    US Expansion Yes-
    Canada Expansion No-
    International Expansion Yes-

    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 Burger Hut

    In 1978, we had a plan to work in a friendly environment where our guests would be welcomed and always feel comfortable; one that offered quality food at value prices. We wanted to serve food quickly, but not serve fast food. We wanted to serve popular and common food (after all, what's more common than a burger in the USA?) but prepare it in an uncommon way -- with special attention to quality and selection. We wanted our guests to have plenty of fresh choices when it came to condiments. We wanted a place we could be proud of and where we would make lots of new friends!​

    The original Burger Hut in Chico, California was located just across the railroad tracks from California State University, Chico. Over the years we have consistently provided quick value-packed meals to college students, while helping many work their way through school as employees. As our popularity grew, so did our business, and we opened several other Burger Hut locations nearby.​

    Today, Burger Hut continues to serve the highest quality food. A family owned and operated restaurant tradition, Burger Hut Burgers takes pride in being a part of the community. Our philosophy remains simple -- provide quality fresh food at reasonable prices and let the guests decide what goes on their burgers.

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