McDonald's vs Habit Burger Franchise Comparison

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

Start-Up Costs and Fees
 
McDonald's Franchise
Habit Burger Franchise
Investment $1,314,500 - $2,306,500$1,231,000 - $1,654,000
Franchise Fee $45,000$35,000
Royalty Fee 4%-
Advertising Fee 4%+-
Year Founded 19551969
Year Franchised 19552013
Term Of Agreement 20 years-
Term Of Agreement 20 years-
Renewal Fee $45K-


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

    Financing Options
     
    McDonald's Franchise
    Habit Burger 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
    Habit Burger 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
    Habit Burger Franchise
    US Expansion YesYes
    Canada Expansion No-
    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 Habit Burger

    "Habit

    From our humble beginning in Santa Barbara, California in 1969 to more than 240 Habit Burger Grill restaurants in communities across the country today, we have always continued to operate under the same simple philosophy: always deliver high-quality food and great service at reasonable prices. The Habit is a burger-centric fast casual restaurant that uniquely combines chargrilling over an open flame to create a delicious variety of fresh and flavorful award-winning burgers, sandwiches, salads and more. At the core of The Habit is our commitment to a ‘quality-first’ mindset. We call it ‘The Habit Difference’.

    The total investment necessary to begin operation of a Habit Burger Restaurant franchise is $1,231,000 to $1,439,000 for a restaurant with no drive-thru, $1,366,000 to $1,604,000 for a restaurant at an end-cap location with a drive-thru, and $1,401,000 to $1,654,000 for a restaurant at a standalone location with a drive-thru. This includes $53,000 to $60,000 that must be paid to the franchisor or affiliate.
    The total investment necessary to begin operation under an Area Development Agreement is $52,000 to $275,000. This includes $50,000 to $250,000 that must be paid to the franchisor or affiliate.