Published in Infobae , 06 - June , 2025 Franchises of Spain

An expert reveals the profit margins, the impact of rent, and the economic relationship between the chain and its franchisees at the iconic fast-food chain.

McDonald’s is undoubtedly one of the most recognized brands in the global restaurant sector and one of the most attractive options for those looking to open a franchise in Spain. However, few know the actual profit margins one can expect when running a franchise of this well-known fast-food chain.

Content creator Borja España, a prominent figure in the world of franchising, recently published a video on his TikTok account (@borja.esp1) explaining the potential profits of opening a McDonald’s in Spain. The expert, who is also the founder of the restaurant company Mahalo Poké and the digital platform Rolty for finding franchises, also provides some interesting facts about McDonald’s business model.

According to the entrepreneur, McDonald’s is one of the fastest-growing fast-food franchises with the largest global presence, boasting over 40,000 locations worldwide. In Spain alone, it already has more than 600 restaurants. While the general perception is that its franchisees earn high incomes, several aspects of the chain's business model are not so obvious.

Low Profit Margins and High Rents
First, the profit margin for franchise locations ranges between 10% and 15%. This percentage, among the lowest in the franchise sector, may seem insufficient, but it makes sense when analyzing the average annual revenue. A typical McDonald’s generates between three and four million euros per year, the expert states, representing a significant amount of net income despite the low margin. Therefore, estimated earnings would be between 300,000 and 600,000 euros per year.

A second relevant factor is the cost associated with renting the premises. It's most common for the multinational to own the properties where its franchisees operate and charge them rent. According to the TikToker, these rents are typically "not cheap." This expense represents a significant portion of the revenue generated by these types of businesses, which the business expert estimates at an effort rate "around 15%," meaning that a substantial part of the revenue goes toward covering this cost, reducing the franchisee's final profitability. However, it's worth noting that the high revenue figures for these businesses also allow them to remain profitable despite the costs.

McDonald's earns more than the franchisee.
Finally, the next little-known aspect of these franchises mentioned by the TikToker is the profit-sharing relationship between the parent company and its franchisees. He states, "McDonald's earns significantly more money from you as a franchisee than you do as a McDonald's franchisee." This difference stems from the business model's structure, in which the brand maintains a dominant position and guarantees control over operations.

This system may seem unequal, but according to Spain, "it's logical and perfectly acceptable," and is justified by the value offered by the franchise with its global presence and employees. The strength of the brand and access to a proven model are advantages that few companies can provide. In fact, the entrepreneur goes so far as to say that "what McDonald's offers is only offered by three or four other brands in the world."