The Strategist

McDonald's to raise franchise fee for the first time in 30 years

09/25/2023 - 03:50

The largest fast-food restaurant company in the world, US McDonald's Corp., has announced the first price hike for franchise owners in the US and Canada in 30 years, according to Barron's.

Marcel Klinger
Marcel Klinger
In some circumstances, the commission will increase from 4% to 5% for those starting brand-new eateries or acquiring existing eateries from the corporation. The hike won't affect current franchise owners.

All McDonald's restaurants have a franchise in about 95% of them. Franchisee payments made up around 60% of the business's revenue in the most recent quarter, making this the source of income with the highest volume.

The company's market capitalization increased by 3.6% to $197.66 billion since the year's beginning, while the S&P 500 index grew by around 13% during the same period.


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