MCD - McDonald's Royalty Fee Hike Sparks Backlash From Franchisee Advocacy Group: 'Do Not Underestimate The Impact' | Benzinga
The decision by McDonald’s (NYSE:MCD) to raise its royalty fee, a first in three decades, has met with stern opposition from a prominent franchisee advocacy group, Business Insider reported.
The National Owners Association (NOA), which represents approximately 1,000 McDonald’s franchisees, labeled the fee increase as “detrimental” to the brand.
The NOA, comprising operators who own multiple restaurants, claims that operators are earning less today than in 2010. McDonald’s, with over 13,400 restaurants in the U.S., plans to raise its monthly royalty fee from 4% to 5% of gross sales. This revision, starting Jan.1, applies to new restaurants, relocated stores, or previously company-owned locations taken over by franchisees.
The NOA urged franchisees to have attorneys review changes ...