How Fast Food Franchises Make Money

McDonald's isn't really a burger company — it's a real estate company that happens to sell hamburgers. This video breaks down how Harry Sonneborn and Ray Kroc built the land-and-rent model behind the Golden Arches, how franchise fees, royalties, and mandatory marketing funds stack up against a single restaurant's revenue, how Subway (Fred DeLuca, now Roark Capital), Yum! Brands (KFC/Taco Bell/Pizza Hut), and Restaurant Brands International (Burger King/Tim Hortons/Popeyes, 3G Capital) each run different versions of the same playbook, and what actually happens to a franchisee's profit margin once rent, royalty, and approved-supplier costs are all subtracted. #McDonalds #HowTheyMakeMoney #BusinessBreakdown #Franchise #HiddenEconomics #FastFood #SmallBusiness