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beatandraise.com

2.2.0.25falsefalse116 - Disclosure - Franchise Arrangementstruefalsefalse1falsefalseUSDfalsefalse1/1/2010 - 12/31/2010 USD ($) USD ($) / shares $eol_PE2163----1010-K0023_STD_365_20101231_0http://www.sec.gov/CIK0000063908duration2010-01-01T00:00:002010-12-31T00:00:00iso4217_USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170pureStandardhttp://www.xbrl.org/2003/instancepure0YearStandardhttp://www.mcdonalds.com/20101231Yearmcd0sharesStandardhttp://www.xbrl.org/2003/instanceshares0iso4217_USD_per_sharesDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instanceshares0USDUSD$5false0us-gaap_LeasesOfLessorDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabel1falsefalsefalse00<div> Franchise Arrangements     Conventional franchise arrangements generally include a lease and a license and provide for payment of initial fees, as well as continuing rent and royalties to the Company based upon a percent of sales with minimum rent payments that parallel the Company’s underlying leases and escalations (on properties that are leased). Under this arrangement, franchisees are granted the right to operate a restaurant using the McDonald’s System and, in most cases, the use of a restaurant facility, generally for a period of 20 years. These franchisees pay related occupancy costs including property taxes, insurance and maintenance. Affiliates and developmental licensees operating under license agreements pay a royalty to the Company based upon a percent of sales, and may pay initial fees. The results of operations of restaurant businesses purchased and sold in transactions with franchisees were not material either individually or in the aggregate to the consolidated financial statements for periods prior to purchase and sale. Revenues from franchised restaurants consisted of:       <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="41%"></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="11%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="11%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">In millions</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">2010</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">2009</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">2008</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> </tr> <tr> <td valign="top"> Rents </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">5,198.4</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom">$</td> <td valign="bottom" align="right">4,841.0</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom">$</td> <td valign="bottom" align="right">4,612.8</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> Royalties </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,579.2</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,379.8</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,275.7</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="top"> Initial fees </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">63.7</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">65.4</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">73.0</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Revenues from franchised restaurants </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">7,841.3</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">7,286.2</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">6,961.5</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> </tr> </table> Future minimum rent payments due to the Company under existing franchise arrangements are:       <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="35%"></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="11%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="11%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">In millions</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">Owned sites</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">Leased sites</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" colspan="2" align="right">Total</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> </tr> <tr> <td valign="top"> 2011 </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,244.4</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom">$</td> <td valign="bottom" align="right">1,104.6</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom">$</td> <td valign="bottom" align="right">2,349.0</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> 2012 </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,213.7</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,075.6</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,289.3</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> 2013 </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,177.1</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,038.5</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,215.6</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> 2014 </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,132.6</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">986.9</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,119.5</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> 2015 </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,075.3</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">926.1</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,001.4</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="top"> Thereafter </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">8,664.2</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">6,715.1</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" align="right">15,379.3</td> <td style="BORDER-BOTTOM: #000000 1px dotted" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top"> Total minimum payments </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">14,507.3</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">11,846.8</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">26,354.1</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" nowrap="nowrap">  </td> </tr> </table> At December 31, 2010, net property and equipment under franchise arrangements totaled $13.4 billion (including land of $3.9 billion) after deducting accumulated depreciation and amortization of $6.7 billion. </div>Franchise Arrangements     Conventional franchise arrangements generally include a lease and a license and provide for payment of initial fees, asfalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringDescription and amounts of lessor entity's leasing arrangements for operating, capital and leveraged leases. This element can be used to disclose the entity's entire lease disclosure as a single block of text.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 13 -Paragraph 23 falsefalseFranchise Arrangements11Franchise ArrangementsUnKnownUnKnownUnKnownUnKnownfalsetrue