Why In-N-Out Makes More Money Than McDonald's Without Franchising

Added: 2026-05-23

[00:00:00]Did you know In-N-Out makes more profit per location than McDonald's, even though they refuse to franchise? Here's what it actually costs them to stay family-owned. While McDonald's makes 60% of their money from rent and franchise fees, In-N-Out keeps every single dollar. The Snyder family owns all 350 locations outright. That's why they can afford to pay workers $18 an hour starting wage when McDonald's franchise owners are stuck at minimum wage. But here's the crazy part. In-N-Out flies in fresh ingredients daily. Their tomatoes come from Cali California farms every morning. McDonald's uses frozen patties that sit for weeks. This costs In-N-Out three times more per burger, but their limited menu of just four main items means they move inventory faster than anyone. A typical McDonald's franchise owner takes home 80,000 after paying corporate fees. The Snyder family?

[00:00:48]They're pulling in over 500 million annually. No franchise fees to split, no corporate overlords taking their cut.

[00:00:54]They own the buildings, the land, and every penny of profit. That's what it actually costs to stay independent.