McDonald's Raises Franchise Fees for First Time in 30 Years to Maintain Competitive Edge
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McDonald's is raising royalty fees for new franchisees in the U.S. and Canada from 4% to 5% starting in January.
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The fee hike is the first in 30 years and aims to help McDonald's maintain its competitive edge.
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The move comes as the company operates in a challenging economic environment with high costs and limited discretionary spending.
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McDonald's says it is outpacing competitors, and investments have made the brand stronger.
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The average cash flows for U.S. franchisees increased more than 35% over the past 5 years.