Franchise opportunities compared

    McDonald’s Corporation vs Mikes Red Tacos

    Reviewed figures from each brand's Franchise Disclosure Document (FDD), side by side. Each figure carries its FDD year and page. This is not a ranking or recommendation, and the two FDDs may cover different years and location groups.

    Initial investment · Item 7

    McDonald’s Corporation

    $701,000 – $1,472,000

    2026 FDD · Item 7

    Mikes Red Tacos

    $594,550 – $1,988,000

    2026 FDD · Item 7

    Initial franchise fee · Item 5

    McDonald’s Corporation

    Not available

    Mikes Red Tacos

    Not available

    Royalty · Item 6

    McDonald’s Corporation

    5% · 1) — 5%

    2026 FDD · Item 6 · PDF p. 18

    Mikes Red Tacos

    3%

    2026 FDD · Item 6 · PDF p. 14

    Before you compare

    • Both sets of figures come from 2026 FDDs.
    • McDonald’s Corporation and Mikes Red Tacos disclose more than one business format, so the investment range spans formats; the full report breaks them out.
    • Item 19 figures cover the location groups each FDD names (McDonald’s Corporation: 7, Mikes Red Tacos: 2). Different groups are not directly comparable.

    Financial commitment

    Estimated initial investment (Item 7)

    McDonald’s Corporation

    $701,000 – $1,472,000
    2026 FDD · Item 7

    Mikes Red Tacos

    $594,550 – $1,988,000
    2026 FDD · Item 7
    Standard initial franchise fee (Item 5)

    McDonald’s Corporation

    Not available
    No single standard fee identified

    Mikes Red Tacos

    Not available
    No single standard fee identified
    Royalty (Item 6)

    McDonald’s Corporation

    5% · 1) — 5%
    0- Item 6 Other Fees OTHER FEES Type of fee Amount Due Date Remarks Royalty
    2026 FDD · Item 6 · PDF p. 18

    Mikes Red Tacos

    3%
    creased to 4 % of weekly Gross Sales) Same as Continuing Royalty You must contribute — 3%
    2026 FDD · Item 6 · PDF p. 14
    Brand / advertising fund (Item 6)

    McDonald’s Corporation

    4% of 5) not less than — 4%
    Advertising and Promotion
    2026 FDD · Item 6 · PDF p. 18

    Mikes Red Tacos

    $170
    {00199195.DOC. } 6 [ 2026 FDD v1F ] operations and marketing fee (currently — 170
    2026 FDD · Item 6 · PDF p. 13

    System scale & health

    Total outlets (Item 20)

    McDonald’s Corporation

    685
    Outlets at end of 2023
    2026 FDD · Item 20 · PDF p. 45

    Mikes Red Tacos

    2
    Outlets at end of 2025
    2025 FDD · Item 20 · PDF p. 59
    Net outlet change (Item 20)

    McDonald’s Corporation

    Not available
    Only one year reported

    Mikes Red Tacos

    +1
    Calculated: 1 at end of 2022 → 2 at end of 2025
    Outlet exits (Item 20)

    McDonald’s Corporation

    Not available
    No complete exit records for a year

    Mikes Red Tacos

    Not available
    No complete exit records for a year
    Franchising since (Item 1)

    McDonald’s Corporation

    1955
    From a verified franchisor listing

    Mikes Red Tacos

    Not available
    Not in reviewed records
    Franchisor founded (Item 1)

    McDonald’s Corporation

    Not available
    Not in reviewed records

    Mikes Red Tacos

    Not available
    Not in reviewed records

    Financial performance (Item 19), by location group

    McDonald’s Corporation
    Locations counted not stated in the reviewed record — domestic traditional McDonald’s restaurants
    $20,421,000
    other domestic traditional McDonald’s restaurants
    2026 FDD · Item 19 · PDF p. 42
    Locations counted not stated in the reviewed record — domestic traditional McDonald’s restaurants
    81 percent
    other domestic traditional McDonald’s restaurants
    2026 FDD · Item 19 · PDF p. 42
    Locations counted not stated in the reviewed record — domestic traditional franchised McDonald’s restaurants
    $4,057,000
    other domestic traditional franchised McDonald’s restaurants
    2026 FDD · Item 19 · PDF p. 42
    +4 more groups in the full report
    Mikes Red Tacos
    Locations counted not stated in the reviewed record — Affiliate Location 2
    $3,775,315
    other Affiliate Location 2
    2026 FDD · Item 19 · PDF p. 64
    Locations counted not stated in the reviewed record — Affiliate Location 1
    $3,328,866
    other Affiliate Location 1
    2026 FDD · Item 19 · PDF p. 64

    Item 19 groups are shown separately and never combined. Revenue or sales figures are not profit. Net outlet change and turnover are Franopolis calculations from the disclosed counts; turnover is a count-based rate, not a measure of owner earnings.

    McDonald’s Corporation vs Mikes Red Tacos: common questions

    Which costs less to open, McDonald’s Corporation or Mikes Red Tacos?
    McDonald’s Corporation: $701,000 – $1,472,000 (2026 FDD · Item 7); Mikes Red Tacos: $594,550 – $1,988,000 (2026 FDD · Item 7). These are each franchisor's Item 7 estimated initial investment. The low end of the disclosed estimate is lower for Mikes Red Tacos. At least one range spans several business formats. Estimates are not quotes, and the FDD years may differ.
    How do McDonald’s Corporation and Mikes Red Tacos royalties compare?
    McDonald’s Corporation: 5% · 1) — 5% (2026 FDD · Item 6 · PDF p. 18); Mikes Red Tacos: 3% (2026 FDD · Item 6 · PDF p. 14). Royalties as disclosed in Item 6; other recurring fees are listed separately.
    Which has more locations, McDonald’s Corporation or Mikes Red Tacos?
    McDonald’s Corporation: 685 (2026 FDD · Item 20 · PDF p. 45); Mikes Red Tacos: 2 (2025 FDD · Item 20 · PDF p. 59). Total outlets from Item 20. Outlet counts do not indicate territory availability or franchisee results.
    Do McDonald’s Corporation and Mikes Red Tacos disclose financial performance (Item 19)?
    McDonald’s Corporation has reviewed Item 19 figures for 7 location groups; Mikes Red Tacos has reviewed Item 19 figures for 2 location groups. Different location groups are not directly comparable, and revenue is not profit.

    Answers restate the reviewed figures above. Not a ranking or recommendation.

    How Franopolis reviews FDD figures

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