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CEO North America > Business > McDonalds hikes up franchising royalty fees

McDonalds hikes up franchising royalty fees

in Business, News
McDonalds hikes up franchising royalty fees
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Fast food giant McDonalds is making it more expensive for new operators to run a franchise location as the company implements its first royalty hike in more than three decades.

New franchisees will be required to pay McDonalds a 5% royalty rate of monthly sales, up from 4%.

The change will reportedly affect new franchise owners while previous owners will maintain the 4% royalty rate.

The royalty hike is expected to go in effect beginning Jan. 1.

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