McDonald's vs Schlotzsky's Franchise Comparison

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

Start-Up Costs and Fees
 
McDonald's Franchise
Schlotzsky's Franchise
Investment $1,314,500 - $2,306,500$719,400 - $959,400
Franchise Fee $45,000$35,000
Royalty Fee 4%6%
Advertising Fee 4%+4%
Year Founded 19551971
Year Franchised 19551977
Term Of Agreement 20 years-
Term Of Agreement 20 years-
Renewal Fee $45K-


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

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

    Training & Support
     
    McDonald's Franchise
    Schlotzsky's Franchise
    Training On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant On-The-Job Training: 240 hours Classroom Training: 50 hours
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
    Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app 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
    Schlotzsky's 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 Schlotzsky's

    Founded in 1971, Schlotzsky's is a pioneer in the fast casual restaurant category, offering customers an inviting restaurant feel, affordable meals throughout the day, and great food that has created a passionate following among customers throughout the country and the world. Our delicious and unique products, exciting, modern restaurant design, superior franchise support and committed ownership make a Schlotzsky's franchise a great business opportunity.  Joining the Schlotzsky's franchise family will open the door to an exciting future.

    Veteran Incentives  $10,000 off franchise fee           

    "Entrepreneur
    #349 in Franchise 500 for 2020.
    #374 in Franchise 500 for 2021.