McDonald’s Warns U.S. Franchisees of Higher Bills Next Year
- Chain announces changes in internal memo to store operators
- Management calls moves ‘difficult decisions’ to boost growth
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McDonald’s Corp. is rolling out a series of financial changes that will result in heftier bills for its U.S. franchisees beginning next year, a move that is stoking tensions with restaurant owners.
According to an internal memo viewed by Bloomberg News, McDonald’s is ending on Jan. 1 an approximately $300-a-month subsidy it pays each restaurant related to Happy Meals. It’s also asking franchisees to jointly fund its tuition program beginning in April, instead of corporate paying for 100%. McDonald’s will also move operators to a “pay as you go” model for technology investment, resulting in a temporary additional expense of $423 per month beginning in March.