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

cnbc.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.