According to a report by CNBC on Friday, McDonald’s is increasing the royalty fees for new franchise operators in the United States for the first time in nearly 30 years. This adjustment was communicated through a message from Joe Erlinger, the President of McDonald’s U.S. division.
The company plans to raise these fees from 4% to 5%, effective January 1st, as reported.
According to the report, this alteration will have no impact on current franchisees who maintain their existing footprint or those who acquire a franchised location from another operator.
Additionally, the adjustment will not be applicable to refurbished existing locations or to restaurants transferred within the same family, as per the report.
McDonald’s has not yet provided a comment in response to the request.
In July, the company had announced its anticipation of a slowdown in revenue growth during the second half of the year. This adjustment was prompted by indications of decreasing inflation, leading McDonald’s to exercise caution in adjusting menu prices, despite reporting quarterly profits that exceeded expectations.
