Quick Service Restaurant Ground Rent Calculator

QSR ground leases price on site profitability, traffic count, and corporate guarantee.

Annual gross sales

Target occupancy %

Percentage rent %

Breakpoint multiple of base

Base ground rent

$224,000

Breakpoint sales

$3,733,333

Overage rent at current sales

How the math works

Base rent = sales × occupancy %. Breakpoint = (base / pct rate) × multiple.

$2.8M × 8% = $224k base. Breakpoint $224k/6% = $3.73M. Overage 0 at $2.8M sales.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Quick Service Restaurant Ground Rent Calculator is built to give a quick, browser-based estimate for quick service restaurant ground rent. QSR ground leases price on site profitability, traffic count, and corporate guarantee. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the quick service restaurant ground rent result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this quick service restaurant ground rent estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

How to Use

Enter store annual gross sales.
Enter target occupancy cost %.
Enter % percentage rent override.
Enter break-point multiple.
Read ground rent and breakpoint.

Frequently Asked Questions

QSR ground lease?

Ground lease: tenant builds, owns, and operates restaurant on landlord-owned land. Term: 15-25 year base + multiple 5-year options. Tenant pays ground rent + taxes + insurance + all operating costs (true triple-net). Typical for McDonald's, Chick-fil-A, Starbucks, Taco Bell, Raising Cane's, Chipotle, In-N-Out. Corporate-guaranteed leases: 1031 exchange-friendly, cap rates 4.5-6.5%. Franchisee-guaranteed: 5.5-7.5%.

Rent as % of sales?

QSR target occupancy cost: 6-10% of gross sales. Ground rent typically 7-9% of sales. Traditional QSR (McDonald's, BK): $70-150k ground rent. Premium QSR (Chick-fil-A, In-N-Out): $120-250k (higher sales, higher rent). Coffee/breakfast (Starbucks, Dunkin'): $80-160k. Traditional in strong markets: $150-350k ground rent for $3-5M AUV stores.

Percentage rent?

Many QSR leases include percentage rent clause: tenant pays base ground rent + X% of sales above breakpoint. Breakpoint = base rent / percentage rate. Example: $120k base / 6% = $2M natural breakpoint. $2.5M sales: $120k + ($500k × 6%) = $150k total. Percentage rent captures growth; base rent provides floor. Common in strong markets where landlord expects sales growth.

Site selection drivers?

Daily traffic count: 25k+ VPD minimum. Drive-thru: required for most QSR. Co-tenancy: shopping center synergy boosts sales 10-30%. Competition: 1 per 5-10k population typical. Egress: right-in/right-out minimum; signal-controlled access ideal. Visibility: pole sign, building signage. Site size: 0.7-1.5 acres. High-performing sites: $3-7M AUV; average $1.5-3M; struggling $1-1.5M. Site selection determines 60-80% of sales variance.