McDonald's is raising its Royalty Fees for new franchisees from 4% to 5%, starting January 1. This is the first time in nearly 30 years that the fast-food giant has increased its royalty fees. Existing franchisees and those who buy or rebuild existing locations will not be affected. The change is expected to impact new franchisees, buyers of company-owned restaurants, relocated restaurants, and other scenarios involving the franchisor. McDonald's U.S. President, Joe Erlinger, stated that the company is trying to redefine what success means and position itself for long-term success. McDonald's franchisees run around 95% of its U.S. restaurants.

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