Starting in 2024, owners of US & Canadian based McDonald’s franchises, who open new restaurants or buy locations previously operated by McDonald’s will have a 5% royalty fee – a rise from the current 4%.
The 5% royalty rate is standard for McDonald’s franchisees outside of North America, so this rise is set to align the regions more closely.
The restaurant chain have not changed royalty fees for nearly 30 years, but have seen significant revenue growth since the turn of the century – $14.87Bn turnover in 2001 vs $24.19Bn in 2023.
The McDonald’s Corp share price has risen 61.33% over the past 5 years.
Franchisees run the majority of McDonald’s stores – 95% of US based restaurants are operated by franchisees.
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