From the filings
McDonald's 2026 FDD requires new restaurants to use the Sesame POS platform, bought through approved POS suppliers, and restaurants to buy Cashless System hardware and software from a designated supplier, while most other purchases run under an approved-supplier model. With 13,559 total units and franchised outlets up 0.9% year over year, technology decisions for these specific systems run through headquarters.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
7.25%of gross sales (FY2026)
15% reference
Franchisor behaviours
15 requirements the franchisor states in this filing, each in its own words; 6 explicit no's; 13 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
McDonald’s has independent access to this information and there are no contractual limits on its right to access such information.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Franchisee shall render, in a manner specified by McDonald’s, a statement, in such form as McDonald’s shall reasonably require from time to time, of all receipts from the operation of the Restaurant for the preceding month immediately ended.
How the franchisor buys
Is there a franchisee advisory council, association or committee?
YesItem 20
Trademark-specific franchisee organizations created, sponsored, or endorsed by McDonald’s: 1. National Franchisee Leadership Alliance (NFLA)
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
In 2024, we and our predecessor received $39,008,767 in loan guarantee service fees, cashless incentives, and beverage supplier rebates.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
55Item 8
approximately 55% to 65% of your overall purchases in operating the restaurant
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you desire to use a particular supplier not already approved by McDonald’s and if that supplier meets the specifications and requirements of the McDonald’s System, then that supplier may, under conditions described below, become an approved supplier for your specific restaurant.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
McDonald’s shall have the right to inspect and/or audit Franchisee’s accounts, books, records, and tax returns at all reasonable times to ensure that Franchisee is complying with the terms of this Franchise.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
Franchisee acknowledges that McDonald’s or its affiliates own all proprietary rights in and to the McDonald’s System and that the information revealed in the business manuals, in their entirety, constitute confidential trade secrets.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
You do not select or approve restaurant sites.
Marketing
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesFranchise agreement
Franchisee shall expend during each calendar year for advertising and promotion of the Restaurant to the general public an amount which is not less than four percent (4%) of Gross Sales (as that term is defined in paragraph 7) for such year.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 11
You must also sign an agreement with McDonald’s designated transaction processors (see Item 8), and McDonald’s recommends that the restaurant has McDonald’s approved high-speed internet access.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
Franchisee shall at all times participate in the McDonald’s automatic debit/credit transfer program as specified by McDonald’s from time to time for the payment of all amounts due McDonald’s pursuant to this Franchise.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 8
McDonald’s requires new restaurants to use a standard POS platform, Sesame.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
McDonald’s has independent access to this information and there are no contractual limits on its right to access such information.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
Additionally, optional courses may be offered to you or your employees for a fee.
Who buys here
The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.
Formal HQ procurement; C-suite sponsor + cross-functional committee + IT/security/legal; often PE-backed.
McDonald's runs 13,559 quick-service units — 12,887 franchised and 672 company-owned — per its 2026 FDD, with franchised outlets up 0.9% year over year on a royalty of 5% or 4% of Gross Sales, depending on the circumstances, and a traditional term of generally 20 years. Two known operators run restaurants in Alaska, a small visible slice of a system this large.
The FDD names Director & President Joe Erlinger, Directors Ian Borden and Angela K. Steele, U.S. Chief Restaurant Operations Officer Mason Smoot and U.S. Chief Finance Officer Tom Dillon. For the specific systems Item 8 designates — the Cashless System, the Gift Card System and Sesame software — purchasing runs through McDonald's-designated or approved suppliers rather than local restaurant choice.
All new restaurants must install the current Store Systems, including digital menu boards and kiosks, and use Sesame, the standard POS platform, bought through approved POS suppliers. Franchisees must submit monthly financial statements through McDonald's web-based Franchisee Financial System (FFS). Restaurants must buy Cashless System hardware and software — card readers, cables and related equipment — from McDonald's designated supplier. Restaurants offering the Gift Card System must sign a subscription agreement with P2W, Inc., which manages the system, and buy its hardware from a designated supplier; no other supplier is currently approved for it. Item 8 also requires the Sesame computer software license fee and its first-year and annual maintenance fees to be paid to McDonald's or an affiliate.
Item 8's approved-supplier model requires franchisees to deal only with McDonald's-approved suppliers, though a franchisee can request approval of a new supplier that meets McDonald's specifications. Item 17 gives no right to renew or extend a franchise agreement; any successor term is governed by a separate New Term Policy that is not part of the Franchise Agreement and is subject to change at McDonald's sole discretion.
The embedded PDF viewer below holds the complete 2026 Franchise Disclosure Document for McDonald's.
Talk to FranCloud for a ranked list of quick-service systems with designated-supplier technology mandates like McDonald's.
Questions vendors ask
Every number on this page traces back to this document. Read it in full, page by page. Buy the original PDF to download, search, and annotate it.
View only A one-time purchase: the original filing, yours to keep.
FDD alert
We’ll email you the moment McDonald's files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
2 operators run 2 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| AK | 2 |
|---|
Related Quick service restaurant brands
Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.