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Royalty Fees

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business2 years ago•1 min saved

McDonald's increases franchise royalty fees for US and Canada restaurants

McDonald's is increasing royalty fees for new franchisees in North America for the first time in 30 years, raising the fee to 5% starting January. The move aims to help the company maintain its competitive edge. Previously, the royalty fees in the US and Canada were at 4%. McDonald's stated that the average cash flows for US franchisees have increased by over 35% in the past five years. The company has over 38,000 locations worldwide, with over 90% of them owned and operated by independent local business owners.

via Fox Business|

#business #competitive-edge #franchisees

business2 years ago•1 min saved

McDonald's Implements First Royalty Fee Increase in 30 Years

McDonald's is increasing the royalty fees for new franchise operators in the United States and Canada from 4% to 5%, starting January 1, 2023. This is the first time in nearly three decades that the fast-food giant has raised these fees. The change will not affect existing franchisees or those who buy franchised locations from other operators. The revised rate aims to maintain McDonald's competitive edge and support independent small business owners. McDonald's operates over 13,000 locations in the United States, with franchisees making up nearly 30% of its total revenue in 2022.

via Yahoo Finance|

#business #canada #franchise-operators

business2 years ago•2 min saved

McDonald's Implements First Royalty Fee Increase in Nearly 30 Years for New Franchises

McDonald's is increasing its royalty fees for new franchised restaurants from 4% to 5%, starting January 1, 2022, marking the first hike in nearly 30 years. Existing franchisees maintaining their current footprint or buying from another operator will not be affected, nor will rebuilt existing locations or restaurants transferred between family members. The change will impact new franchisees, buyers of company-owned restaurants, relocated restaurants, and other scenarios involving the franchisor. McDonald's U.S. President Joe Erlinger stated that the move aims to redefine success and emphasize the value of the McDonald's brand. The company's relationship with its U.S. operators has been strained in recent years, but despite the turmoil, McDonald's U.S. business is thriving, with domestic same-store sales growing 10.3% in the most recent quarter.

via CNBC|

#business #fast-food #franchisees