Question:

Does Mc Donalds own all the land they are located on?

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I have heard Mc Donald’s owns all the property of their franchisees. I've looked around and it appears they prefer it but does any one know if Mc Donald’s allows any one one to own the property itself at all (I know they allow you to own the building ect. I am only interested in the land aspect.)

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  1. No, they do not.

    Franchise owners frequently rent retail space in malls and office buildings and even casinos (Circus Circus and Stratosphere)


  2. From McDonald's 10K:

    The Company owns the land and building or secures long-term leases for both Company-operated and conventional franchised restaurant sites.

    Of the 31,377 restaurants in 118 countries at year-end 2007, 20,505 are operated by franchisees (including 2,781 operated by developmental licensees), 3,966 are operated by affiliates and 6,906 are operated by the Company

    At December 31, 2007, the Company was the lessee at 13,322 restaurant locations through ground leases (the Company leases the land and the Company or franchisee owns the building) and through improved leases (the Company leases land and buildings).

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