Circle K vs McDonald’s
Franchise Comparison 2026
Circle K is a retail franchise, while McDonald’s operates in quick-service restaurants. Circle K requires an investment of $1.5M – $2.7M while McDonald’s requires $1.5M – $2.6M. In terms of revenue, McDonald’s reports higher average unit revenue at $4.0M. On SBA loan performance, Circle K has a lower charge-off rate (8.3%) compared to McDonald’s (16.7%). FranchiseVerdict rates Circle K B (Above Average) and McDonald’s A (Top Quintile).
| Metric | Circle K | McDonald’s |
|---|---|---|
| Verdict Grade | ATop QuintileTop Quintile | ATop QuintileTop Quintile |
| Investment Range | $1.5M – $2.7M | $1.5M – $2.6M |
| Franchise Fee | $25K | $45K |
| Royalty Rate | 3.0% | 4.0% |
| Average Revenue (Item 19) | $1.4M | $4.0M |
| SBA Charge-Off Rate | 8.3% (45 loans) | 16.7% (24 loans) |
| Total Units | 6,063 | 13,457 |
| Unit Growth (YoY) | N/A | N/A |
| Year Began Franchising | 1995 | 2005 |
| FDD Year | 2024 | 2024 |
Investment Range
$1.5M – $2.7M
$1.5M – $2.6M
Franchise Fee
$25K
$45K
Royalty Rate
3.0%
4.0%
Average Revenue (Item 19)
$1.4M
$4.0M
SBA Charge-Off Rate
8.3% (45 loans)
16.7% (24 loans)
Total Units
6,063
13,457
Unit Growth (YoY)
N/A
N/A
Year Began Franchising
1995
2005
FDD Year
2024
2024