Posted 9/22/2023, 10:30:01 AM
McDonald's Raising Royalty Fees for New Franchisees for First Time in 30 Years
- McDonald's raising royalty fees for new franchised restaurants from 4% to 5% starting Jan 1, first hike in nearly 30 years
- Will not affect existing franchisees maintaining footprint or transferring within family
- Will impact new franchisees, buyers of company stores, relocated restaurants
- McDonald's changing terminology from "service fees" to "royalty fees"
- Franchisees run 95% of 13,400+ U.S. McDonald's restaurants
- Comes amid rocky relationship between McDonald's and U.S. franchisees
- Despite turmoil, McDonald's U.S. business is booming with 10.3% same-store sales growth last quarter