Global Flight Cancellations 2026: Middle East Air Travel Chaos Explained 
Novartis to Acquire Biotech Firm Excellergy in $2 Billion Deal 
Innate Pharma Reports 55% Revenue Drop and €49.2M Net Loss for 2025 
Federal Judge Blocks Pentagon's Blacklisting of AI Company Anthropic 
Trump Tariffs Show Minimal Economic Impact but Boost Federal Revenue, Study Finds 
Can your cat recognise you by scent? New study shows it’s likely 
Bank of Japan Faces Rate Uncertainty Amid Middle East Oil Shock 
Why have so few atrocities ever been recognised as genocide? 
Japan Eyes Oil Futures Intervention to Stabilize Yen Amid Middle East Crisis 
Asian Currencies Stay Muted as Dollar Holds Firm Amid Iran Uncertainty 
AWS Bahrain Region Disrupted by Drone Activity Amid Middle East Conflict 
Columbia Student Mahmoud Khalil Fights Arrest as Deportation Case Moves to New Jersey 
WTO Reform Talks Begin in Cameroon Amid Global Trade Tensions 
Asian Currencies Hold Steady as Dollar Stays Firm Amid Middle East Uncertainty 
U.S. Stocks Tumble as Iran Peace Deal Uncertainty Spooks Markets 
Debate over H-1B visas shines spotlight on US tech worker shortages 
McDonald's announced an increase in royalty fees for new franchises in the US and Canada. The move aligns with global standards and follows the company's revenue challenges and recent price reductions.
Starting from January 1, the royalty fees will be increased from 4% to 5%. However, franchises engaged in rebuilding, renovating existing locations, or transferring an outlet to another party will not be affected by this change, as stated in the letter.
This decision comes when the restaurant giant is experiencing a slowdown in revenue growth for the remainder of the year. As signs of easing inflation emerge, McDonald's has opted to lower menu prices.
Earlier this year, McDonald's Chief Financial Officer, Ian Borden, acknowledged operating challenges amidst elevated costs, restricted customer discretionary spending, and the pressure on industry traffic. Nevertheless, CEO Chris Kempczinski expressed confidence in the company's market value, positioning it favorably to navigate the current economic challenges.
While Northcoast Research analyst Jim Sanderson believes the impact on McDonald's revenue will be minimal due to the limited number of new store openings in the United States, the franchise business remains a significant contributor. As of December 31, approximately 95% of the 13,400 stores operated in the United States were franchisee-operated, constituting nearly 30% of the company's total revenue in 2022.
According to a letter obtained by Reuters on Friday, average cash flows for US franchisees have displayed impressive growth of over 35% in the past five years. In addition to the change in fee rates, McDonald's will also alter the payment terminology.
"Service fees" will be replaced with "royalty fees," aligning with the standard practice in all other McDonald's markets worldwide. The royalty fee represents the amount restaurant operators pay the owner, with the rate determined based on the revenue generated by the licensed property.
Photo: VLADISLAV BOGUTSKI/Unsplash
