The standard initial term length of a McDonald's franchise agreement is 20 years.
This long term reflects the scale of opening or acquiring a restaurant. Franchisees typically invest in equipment, signs, seating, décor, training, and ongoing improvements, while McDonald's supplies the brand, operating system, standards, and support. The agreement generally combines operating rights with occupancy arrangements for the restaurant site.
At the end of the 20-year term, renewal is not automatic. McDonald's may offer a new agreement to the existing franchisee, approve another franchisee, or close the location. Terms can vary by country, site, lease conditions, and agreement type, so “standard” does not mean every contract is identical.
A common mix-up is confusing the initial term with renewal periods or with the length of a master-franchise agreement covering an entire territory. The 20-year figure refers to the conventional restaurant franchise arrangement, not ownership of the McDonald's brand or land.