McDonald's to raise royalty fees for new restaurant operators, for the first time in 3 decades

McDonald's is raising royalty fees for new U.S. franchise operators for the first time in nearly three decades, CNBC reported on Friday, citing a message from the burger giant's U.S. President Joe Erlinger.

The company is raising those fees to 5% from 4%, starting Jan. 1, the report said.

The change will not affect existing franchisees who are maintaining their current footprint or who buy a franchised location from another operator, the report said.


It will also not apply to rebuilt existing locations or restaurants transferred between family members.

McDonald's did not immediately respond to Reuters' request for a comment.

The company had said in July it expects revenue growth to moderate in the second half of the year as signs of easing inflation prompt it to temper menu prices, even as it reported better-than-expected quarterly profit.