McDonald’s Largest Franchisee Renews 20-Year Deal Amid Global Expansion Push

Arcos Dorados Holdings Inc., the largest McDonald’s franchisee globally and the leading restaurant company in Latin America, is in the process of finalizing a 20-year renewal of its Master Franchise Agreement (MFA) with McDonald's, according to a recent press release on BusinessWire. This renewal will extend their partnership from January 2025 through 2045, with a steady royalty structure of 6% for the first 10 years, increasing slightly over the following decade. This long-term agreement is expected to solidify Arcos Dorados' position in its 20 countries, where it operates nearly 2,400 McDonald’s restaurants, while also supporting the opening of 90-100 new units in 2025.

This renewal comes at a critical time for McDonald's, which recently announced an aggressive expansion plan to reach 50,000 global locations by 2027, its most ambitious growth target since the company began selling franchises. The expansion includes adding nearly 10,000 new locations worldwide, with significant growth in international licensed markets like China. 

As McDonald’s pushes for rapid global expansion, it is also leveraging artificial intelligence through a collaboration with Google Cloud to enhance operational efficiency, including optimizing staffing and menu recommendations. 

McDonald's is also rolling out its new drive-thru concept, CosMc's, to compete with brands like Starbucks and Dunkin' by focusing on customizable beverages and snack items.

Read the original press release here. 

For more information on McDonald's franchises, check out these related 1851 Franchise articles:

• How Much Does It Cost To Buy a McDonald’s Franchise?
• How Successful Franchises Like McDonald’s Thrive in Foreign Markets
• How To Buy a Fast-Food Franchise