Increase in royalty fees for new franchised restaurants at McDonald’s

Increase in royalty fees for new franchised restaurants at McDonald’s


A McDonald’s⁤ golden arches‍ logo is seen at a ⁢franchise restaurant ⁤owned ⁢by Rippon Family Restaurants.

Paul Weaver | Lightrocket | Getty Images

McDonald’s franchisees who add new ⁤restaurants will⁢ soon have to​ royalty fees for new franchised restaurants at McDonald's”>pay higher royalty⁣ fees.

The fast-food giant ⁤is raising those fees from 4% to 5%, starting Jan. 1. It’s⁤ the first⁢ time in nearly three‍ decades that ​McDonald’s is hiking its ⁤royalty fees.

The change will not ‍affect existing franchisees who are maintaining⁤ their current footprint or who buy a ⁢franchised location ‌from another operator. It will⁢ also not​ apply to ​rebuilt existing locations or ‍restaurants transferred between family members.

However, ‌the ⁤higher rate will affect new ​franchisees, buyers of company-owned ​restaurants, ‌relocated restaurants‍ and other scenarios that involve the franchisor.

“While we created the ⁤industry we now lead, we must continue to⁣ redefine what success looks like and position ourselves for long-term success to ensure the value of our brand remains as strong…

2023-09-22 07:24:28
Article from www.cnbc.com

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