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Franchise Arrangements
 12 Months Ended
Dec. 31, 2016
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
2016

 
2015

 
2014

Rents
$
6,107.6

 
$
5,860.6

 
$
6,106.7

Royalties
3,129.9

 
2,980.7

 
3,085.1

Initial fees
89.4

 
83.4

 
80.2

Revenues from franchised restaurants
$
9,326.9

 
$
8,924.7

 
$
9,272.0


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

 
Total (1)

2017
 
$
1,319.1

 
$
1,370.5

 
$
2,689.6

2018
 
1,290.6

 
1,327.0

 
2,617.6

2019
 
1,261.0

 
1,279.1

 
2,540.1

2020
 
1,219.9

 
1,205.9

 
2,425.8

2021
 
1,167.5

 
1,127.4

 
2,294.9

Thereafter
 
10,018.5

 
8,745.2

 
18,763.7

Total minimum payments
 
$
16,276.6

 
$
15,055.1

 
$
31,331.7


(1) Includes future gross minimum rent payments due to the Company from businesses in markets considered held for sale as of the date of the Company's filing of this report on Form 10-K. These rent payments per year (in millions) are as follows: 2017- $91.8; 2018- $90.6; 2019- $87.2; 2020- $84.5; 2021- $81.3; Thereafter- $589.2.
At December 31, 2016, net property and equipment under franchise arrangements totaled $16.3 billion (including land of $4.5 billion) after deducting accumulated depreciation and amortization of $7.6 billion.