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Take 5 million in loans, start 3 and then you have 450k - .05*5 million = 250k free cash flow. Not a bad deal at all in an inflationary environment, but a rough deal in an environment with rising rates.

They won't allow you to franchise if you need a loan to come up with the money. You need to demonstrate "unencumbered liquid assets." They might allow a certain percentage to be borrowed, but it's likely rather low.

That's what, ten percent in profits? Sounds pretty good to me!

"franchise owner" usually means managing the restaurant, not passive income.

Like all investors / business owners income is the resukt of actively managing something. In the case of McD franchise owners, there are at least people working for you to whom tasks can be delegated

Usually means hiring a GM and checking the books / visiting once a month.

That's pretty good.

That's why a lot of people own 2 or 3.

I'll take a 10 cap any day of the week right now.