McDonald’s vs Papa Johns
Franchise Comparison 2026
Both McDonald’s and Papa Johns are quick-service restaurants franchises. McDonald’s requires an investment of $1.5M – $2.6M while Papa Johns requires $261K – $853K. In terms of revenue, McDonald’s reports higher average unit revenue at $4.0M. On SBA loan performance, McDonald’s has a lower charge-off rate (16.7%) compared to Papa Johns (18.1%). FranchiseVerdict rates McDonald’s A (Top Quintile) and Papa Johns A (Top Quintile).
| Metric | McDonald’s | Papa Johns |
|---|---|---|
| Verdict Grade | ATop QuintileTop Quintile | ATop QuintileTop Quintile |
| Investment Range | $1.5M – $2.6M | $261K – $853K |
| Franchise Fee | $45K | $25K |
| Royalty Rate | 4.0% | 5.0% |
| Average Revenue (Item 19) | $4.0M | $1.2M |
| SBA Charge-Off Rate | 16.7% (24 loans) | 18.1% (323 loans) |
| Total Units | 13,457 | 3,291 |
| Unit Growth (YoY) | N/A | N/A |
| Year Began Franchising | 2005 | 2021 |
| FDD Year | 2024 | 2025 |
Investment Range
$1.5M – $2.6M
$261K – $853K
Franchise Fee
$45K
$25K
Royalty Rate
4.0%
5.0%
Average Revenue (Item 19)
$4.0M
$1.2M
SBA Charge-Off Rate
16.7% (24 loans)
18.1% (323 loans)
Total Units
13,457
3,291
Unit Growth (YoY)
N/A
N/A
Year Began Franchising
2005
2021
FDD Year
2024
2025