The company on the sign almost never runs the place. We visit four brands that each collect from their owners in a different way: the rent, the supplies, the equipment and the name.
Of McDonald's restaurants are run by franchisees.McDONALD'S 10-K FY2025 · MD&A
McDonald's rent from franchisees, against $9.7B its own restaurants sold.McDONALD'S 10-K FY2025
Of Domino's revenue is supplying its own franchisees.DOMINO'S 10-K FY2025
| Number | How we got it | Source |
|---|---|---|
| 95% | franchised share of 45,356 restaurants (2,039 company-operated) | McDonald's 10-K, fiscal 2025, MD&A |
| $10.4B vs $9.7B | rents $10,442M; sales by company-owned and operated restaurants $9,690M | McDonald's 10-K, fiscal 2025, statement of income |
| 60% | supply chain revenue $2,989.5M ÷ total revenues $4,940.0M | Domino's 10-K, fiscal 2025, income statement |
| $85 vs $11 | Domino's keeps about $85 of every $100 of royalties from stores outside the U.S. (segment income $288.5M / $338.7M) and about $11 of every $100 from supplying its stores ($320.1M / $2,989.5M) | Domino's 10-K FY2025 · segment income |
| $77+ | U.S. royalties ($677.1M, two-thirds of all royalties) are reported with its own stores, not alone. U.S. segment income $575.3M less at most $53.6M from its own stores leaves at least about $522M: at least about $77 of every $100. Our estimate, a floor | Domino's 10-K FY2025 · our arithmetic |
| 5 to 9 | franchisees must "replace this equipment approximately every five to nine years" | Planet Fitness 10-K, fiscal 2025, Item 1 |
| 51 of 9,805 | owned or leased properties ÷ all properties (incl. 144 residential) | Marriott 10-K, fiscal 2025, properties table |
Don't trust the headline, or the hot take, or even us. Every number in this story is in the filings listed above. Open them and check.
See the filings Next: Where your $5 at Starbucks really goes
