McDonald’s hikes royalty fee rates to 5% in US and Canada: report    

This is the first rate increase in 30 years.

McDonald’s will be increasing its royalty fee to franchise a McDonald’s restaurant in the US and Canada to 5%, up from 4%, according to a report by CNN.

The royalty fee is a monthly percentage of sales.

Citing letters sent to employees and franchisees, McDonald’s US president Joe Erlinger said this would help align the North American market with the international market. Royalty fees in McDonald’s international markets are generally at 5%.

The fast food giant said the change would ‘be limited to hundreds of restaurants in the US and Canada in a given year’, with the rate applied to more restaurants over time. McDonald’s has over 13,400 in the US and about 40,300 globally.