Nathan's Famous vs McDonald's Franchise Comparison

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

Start-Up Costs and Fees
 
Nathan's Famous Franchise
McDonald's Franchise
Investment $43,000 - $1,071,360$1,314,500 - $2,306,500
Franchise Fee $30,000$45,000
Royalty Fee 5.5%4%
Advertising Fee 2%4%+
Year Founded 19161955
Year Franchised 19881955
Term Of Agreement 20 years20 years
Term Of Agreement 20 years20 years
Renewal Fee 50% of franchise fee$45K


Business Experience Requirements
 
Nathan's Famous Franchise
McDonald's Franchise
Experience
  • Industry experience
  • General business experience

  • Industry experience
  • General business experience
  • Marketing skills
    		•

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

    Training & Support
     
    Nathan's Famous Franchise
    McDonald's Franchise
    Training - On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant
    Support Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Field operations/evaluationsPurchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software
    Marketing Co-op advertisingCo-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app
    Operations 60% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 14

    Absentee ownership of franchise is allowed. (65% of current franchisees are owner/operators)

    		 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
     
    Nathan's Famous Franchise
    McDonald's Franchise
    US Expansion -Yes
    Canada Expansion NoNo
    International Expansion YesYes

    Company Overviews

    About Nathan's Famous

    Franchising is a business concept that allows qualified investors to become part of an established, existing “system.” A good way to look at franchising is, you’re in business for yourself, but not by yourself. Strategically, this provides many benefits under a brand name that has consumer awareness and equity.
    Nathan’s has taken this basic premise and redefined it to exceed the most stringent business criteria of today’s investor.

    Nathan’s offers a wide range of restaurant designs and customized equipment, thereby offering business opportunities to qualified candidates regardless of space constraints or investment limitations.

    The estimated initial investment for a BMP Operation ranges from $43,000 to $86,300, including an initial license fee of $7,500. If you want to add an “Arthur Treacher’s” BMP Operation to your new or existing food service establishment, the additional estimated initial investment will be from $34,404 to $81,486, including an initial license fee of $7,500.

    "Top
    #78 in Gator's Top franchises
    #286 in Franchise 500 for 2020.


    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