McDonald's vs Alamo Drafthouse Cinemas Franchise Comparison

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

Start-Up Costs and Fees

 
McDonald's Franchise
Alamo Drafthouse Cinemas Franchise
Investment $1,314,500 - $2,306,500$1,250,000 - $2,000,000
Franchise Fee $45,000$75,000
Royalty Fee 4%5%
Advertising Fee 4%+0.8%
Year Founded 19551997
Year Franchised 19552003
Term Of Agreement 20 years10 years +10
Term Of Agreement 20 years10 years +10
Renewal Fee $45K-


Business Experience Requirements

 
McDonald's Franchise
Alamo Drafthouse Cinemas Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills
  • -

    Financing Options

     
    McDonald's Franchise
    Alamo Drafthouse Cinemas 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
    Alamo Drafthouse Cinemas Franchise
    Training On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant Austin, TX Four weeks

    On-site Two weeks

    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 Co-Op Advertising

    National Advertising

    Regional Advertising

    Ad Slicks, Brochures, Coupons/rebates, Direct Mailers, Emails Additional Services: Grand Opening, In-house Marketing, Marketing Research, Newsletter, Online Extranet, Press Releases Other Marketing Support: Pre-Show Media

    Operations 82% of all franchisees own more than one unit

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

    Average Number of Employees: 7 Full-time, 60 Part-time

    Expansion Plans

     
    McDonald's Franchise
    Alamo Drafthouse Cinemas Franchise
    US Expansion YesYes
    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 Alamo Drafthouse Cinemas

    We want to share the quality experience of Alamo Drafthouse Cinema with people nationwide. 
    We have world-wide recognition as a leader in the cinema/dining concept.
    We strive for excellence in quality, service, sound quality and film presentation.
    We have received excellent reviews in national and international publications because
    of the experience we create with our no-talking policy and our pre-show philosophy.
    We have become a household name with hard-core movie fans for our unique events.
    We are looking for partners experienced in the hospitality business.