Which Franchise Brings In More?

McDonald's vs Wendy's

See which one brings in more, and what it costs to get there, read straight from the filings. Independent: no commissions, no franchisor revenue.

One opens for $93,000 less and brings in $2,063,343 more a year. The filing names it.
McDonald's lists an Item 7 opening range of $1,472,000 to $2,807,000, compared with $1,463,457 to $2,900,000 for Wendy's. McDonald's reports an Item 19 average of $4,057,000 and median of $3,887,000; Wendy's reports an average of $1,993,657 and median of $1,866,652, with McDonald's higher on average by 103%. McDonald's has the larger Item 20 system, 13,706 units versus 5,969 for Wendy's; Wendy's has fewer Item 3 actions, 6 versus 26 for McDonald's. Both averages sit above their medians, so model the median for your own location. Independent analysis, no commissions, no franchisor revenue.
The Filing, Not the Pitch

One of These Numbers Decides Whether the Next Ten Years Work

MetricMcDonald'sWendy's
Cost to openFDD Item 7$1,472,000 to $2,807,000$1,463,457 to $2,900,000 Lower entry
Total ongoing feesFDD Item 6Variable fee modelVariable fee model
Average unit revenueFDD Item 19$4,057,000 Higher$1,993,657
Median unit revenueFDD Item 19$3,887,000$1,866,652
System sizeFDD Item 2013,706 Larger5,969
LitigationFDD Item 326 actions6 actions Fewer

Item 19 reports historical gross revenue, not profit. It does not include your labor, rent, debt service, or owner pay.

Where to Look Closer

Some Signals Are Real Strengths. Others Hinge on Your Deal

SignalMcDonald'sWendy's
Fee Structure(Item 6) Deal-Specific In Line
Unit Economics(Item 19) Strength Strength
Litigation History(Item 3) Concern Deal-Specific
Operator Validation(Item 20) Deal-Specific In Line
Term & Exit Terms(Item 17) Deal-Specific Deal-Specific
Now It's About Your Deal

The Numbers Don't Tell You Which One to Buy.
The Read Does

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The Filing Won't Tell You Which

An Investment, a Job, or a Lemon?

Which one you get comes down to the operator behind the brand, your market, and how you'd run it. Telling those apart takes someone who's read hundreds of them, before it's your money on the line.

Four months of research and more confused than when you started?

Dan Lorenz founded Zorzee and also runs Guerrilla Franchising, a separate franchise consulting practice. The consultation costs you nothing. If you purchase a franchise through Guerrilla Franchising, the practice may be paid by the brand you choose. Zorzee's published analysis earns nothing from your decision and does not change whether you buy, wait, or walk away.

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▸ How does the consultant get paid, and is your analysis really neutral?

Dan Lorenz founded Zorzee and also runs Guerrilla Franchising, a separate franchise consulting practice. The consultation costs you nothing. If you purchase a franchise through Guerrilla Franchising, the practice may be paid by the brand you choose. Zorzee's published analysis earns nothing from your decision and does not change whether you buy, wait, or walk away. Editorial independence and disclosures: zorzee.com/about

No commissions. No franchisor revenue. Independent analysis only.

Don't Take Our Word for It

Every Number Names Its Source

Quick Answers

Questions Buyers Ask About McDonald's vs Wendy's

Short, sourced answers to what buyers actually search.

Does McDonald's or Wendy's cost more to open?

Wendy's has the lower entry at $1,463,457 and McDonald's the lower ceiling at $2,807,000. Item 7 ranges are $1,472,000 to $2,807,000 for McDonald's and $1,463,457 to $2,900,000 for Wendy's.

Which makes more money, McDonald's or Wendy's?

McDonald's reports higher revenue, an Item 19 average of $4,057,000 versus $1,993,657 for Wendy's. Item 19 is gross sales, not profit.

Which has more litigation, McDonald's or Wendy's?

McDonald's discloses more, 26 Item 3 actions versus 6 for Wendy's.

Which is bigger, McDonald's or Wendy's?

McDonald's is larger, 13,706 Item 20 units versus 5,969 for Wendy's.

Which is the better franchise, McDonald's or Wendy's?

Zorzee doesn't rate franchises good or bad; it depends on your capital, your market, and how you'd run it. Wendy's has the lower entry cost, and McDonald's reports the higher Item 19 average.

The Real Question

Ever Wondered Which One's Actually Better?