McDonald’s to Increase Franchise Royalty Fees for 1st Time in 3 Decades

McDonald’s will also rename the charge from “service fees” to “royalty fees.”
McDonald’s to Increase Franchise Royalty Fees for 1st Time in 3 Decades
The logo of a McDonald's restaurant is seen in Los Angeles on Oct. 24, 2017. Reuters/Lucy Nicholson
Aldgra Fredly
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McDonald’s will raise its royalty fee for franchise operators who are looking to open new locations in the United States in what’s believed to be the company’s first such increase in nearly 30 years, according to a report.

The company will raise its royalty fees to 5 percent from 4 percent beginning Jan. 1, 2024, CNBC reported. This won’t apply to franchisees seeking to renovate existing locations or to transfer an outlet to another party.