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Franchise Arrangements
 12 Months Ended
Dec. 31, 2015
Disclosure Franchise Arrangements Additional Information [Abstract]  
Franchise Arrangements
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.
Revenues from franchised restaurants consisted of:
In millions
2015

 
2014

 
2013

Rents
$
5,860.6

 
$
6,106.7

 
$
6,054.4

Royalties
2,980.7

 
3,085.1

 
3,100.4

Initial fees
83.4

 
80.2

 
76.7

Revenues from franchised restaurants
$
8,924.7

 
$
9,272.0

 
$
9,231.5


Future gross minimum rent payments due to the Company under existing franchise arrangements are:
In millions
Owned sites
 
 
Leased sites
 
 
Total

2016
 
$
1,293.0

 
 
$
1,334.9

 
$
2,627.9

2017
 
1,245.2

 
 
1,288.4

 
2,533.6

2018
 
1,211.7

 
 
1,237.2

 
2,448.9

2019
 
1,176.8

 
 
1,178.5

 
2,355.3

2020
 
1,136.0

 
 
1,104.4

 
2,240.4

Thereafter
 
9,714.9

 
 
8,418.3

 
18,133.2

Total minimum payments
 
$
15,777.6

 
 
$
14,561.7

 
$
30,339.3


At December 31, 2015, net property and equipment under franchise arrangements totaled $14.9 billion (including land of $4.4 billion) after deducting accumulated depreciation and amortization of $8.4 billion.