Arcos Dorados and McDonald’s Extend Master Franchise Agreement for 20 Years
Arcos Dorados, the largest independent McDonald’s franchisee in Latin America, sealed the deal with McDonald’s to extend their Master Franchise Agreement for another 20 years. This means they’ll keep leading the way in Latin America and the Caribbean in bringing those iconic golden arches to hungry customers.
Starting January 1, 2025, the new agreement kicked in, replacing the old one. McDonald’s also has the option to renew for another 20 years starting in 2045. The agreement includes royalty fees based on sales, starting at 6.0% for the first ten years, increasing to 6.25% for the next five years, and maxing out at 6.5% for the final five years.
Woods Staton, Executive Chairman of Arcos Dorados, expressed delight in the renewed partnership, stating, “Arcos Dorados is, by far, the best restaurant operator in Latin America and the Caribbean.” With a clear purpose, they aim to continue creating long-term value for shareholders and making a positive impact in the communities they serve.
Stay tuned for more details about the renewed partnership as Arcos Dorados prepares to share more with the US Securities and Exchange Commission.
Arcos Dorados remains committed to developing communities, creating job opportunities for youth, and working towards a positive environmental impact. You can learn more about Arcos Dorados and their journey to provide the best McDonald’s experience in Latin America and the Caribbean on their website.
