Is it a service fee or a royalty? To McDonald's franchisees, the difference is huge
The burger chain's operators say their cash flow has not kept pace with inflation and the higher royalty on new units and acquisitions will make matters worse. But they say a term change is the bigger problem.
McDonald's plans to increase its U.S. royalty fees by 25%
The burger giant plans to start charging its franchisees 5% of revenue on new locations or acquisitions of corporate restaurants starting next year in the U.S. and Canada, up from 4%.