In a significant development for the fast-food industry, McDonald’s has decided to increase its franchise royalty fees for new restaurants in the United States. This marks the first time in nearly 30 years that the fast-food giant has made such a change to its fee structure.

Historically, McDonald’s franchisees in the United States have been subject to a 4% royalty fee on their sales revenue. However, this percentage will now rise to 5% for operators who are in the process of opening new restaurant locations.

The decision to raise these fees has been met with anticipation and curiosity within the fast-food community, as it represents a notable shift in McDonald’s longstanding approach to its franchise fee structure. For nearly three decades, the company refrained from making any adjustments to these fees, making this development a remarkable departure from tradition.

Initially, the impact of this change may not be felt by a large number of franchise operators, as it specifically applies to those who are embarking on the journey of establishing new McDonald’s locations. However, it is important to note that this decision could have broader implications for the franchisee-franchisor relationship, especially in the context of McDonald’s historical interactions with its U.S. franchisees.

Over the years, McDonald’s has encountered challenges in maintaining a harmonious relationship with its franchisees in the United States. These tensions have occasionally spilled over into public disputes and legal battles, raising questions about the dynamics of the franchise system within the fast-food industry.

Given this history, it is possible that the decision to increase royalty fees could lead to backlash or further strains in the relationship between McDonald’s and its franchisees. The manner in which this change is implemented and communicated will likely play a crucial role in determining the response from franchise operators.

In conclusion, McDonald’s decision to raise royalty fees for new franchised restaurants in the United States after nearly three decades is a significant development within the fast-food industry. While its immediate impact may be limited to new operators, the potential repercussions on the company’s relationship with its franchisees are worth monitoring as the fast-food giant continues to evolve and adapt to changing market dynamics.