McDonald’s to Raise Franchise Royalty Fees for First Time in 30 Years
- 8 months ago
McDonald’s to Raise Franchise Royalty Fees , for First Time in 30 Years.
Starting Jan. 1, new McDonald's franchisees will have to pay 5% in royalty fees, as opposed to the current requirement of 4%.
The increase is the fast food chain's
first in nearly three decades.
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 as ever, McDonald’s U.S. President Joe Erlinger, via CNBC.
We’re not changing services, but we
are trying to change the mindset by getting people to see and understand the power of what you buy into when you buy the McDonald’s brand, the McDonald’s system, McDonald’s U.S. President Joe Erlinger, via CNBC.
Existing franchisees or those who purchase franchised locations from another entity will not have to pay the higher percentage, CNBC reports. .
Current locations that
are rebuilt or transferred
between family members
will not be subjected
to the increase either.
Franchisees operate approximately 95% of the
fast food chain's U.S. restaurants, CNBC reports. .
While McDonald's franchisees have clashed with
the company over a variety of issues in the past.
average cash flows for
American operators have increased
35% over the past five years, CNBC reports.
Starting Jan. 1, new McDonald's franchisees will have to pay 5% in royalty fees, as opposed to the current requirement of 4%.
The increase is the fast food chain's
first in nearly three decades.
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 as ever, McDonald’s U.S. President Joe Erlinger, via CNBC.
We’re not changing services, but we
are trying to change the mindset by getting people to see and understand the power of what you buy into when you buy the McDonald’s brand, the McDonald’s system, McDonald’s U.S. President Joe Erlinger, via CNBC.
Existing franchisees or those who purchase franchised locations from another entity will not have to pay the higher percentage, CNBC reports. .
Current locations that
are rebuilt or transferred
between family members
will not be subjected
to the increase either.
Franchisees operate approximately 95% of the
fast food chain's U.S. restaurants, CNBC reports. .
While McDonald's franchisees have clashed with
the company over a variety of issues in the past.
average cash flows for
American operators have increased
35% over the past five years, CNBC reports.