McDonald's Raises Royalty Fees for New U.S. and Canada Franchises Starting in 2023

McDonald's is raising royalty fees for new franchise restaurants in the U.S. and Canada from 4% to 5% starting Jan 1, 2023. This does not affect existing franchises.
The move brings U.S. and Canada franchise fees in line with fees charged in other McDonald's markets worldwide.
The fee hike comes as McDonald's sees slowing revenue growth for 2022 and lowers menu prices due to easing inflation.
The impact on McDonald's revenue is expected to be limited as there are few new U.S. stores opening.
Average cash flows for U.S. franchisees have grown over 35% in the last 5 years. McDonald's will also change the term "service fees" to "royalty fees."

reuters.com

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9/19/2023

McDonald's Blasts California's New Fast Food Law, Claiming 'Draconian' $250K Costs Per Store

A group representing McDonald's franchise owners in California criticizes the state's fast food bill, saying it will cost small business owners $250,000 per year and could lead to the shutdown of locally owned restaurants and loss of jobs.