Arcos Dorados Holdings, Inc. (ARCO), Latin America's largest restaurant chain and the world's largest independent McDonald's franchisee, announced Thursday that it renewed its long standing Master Franchise Agreement or MFA, with McDonald's Corp. (MCD) on December 30, 2024.
The parties have finalized a new 20-year MFA that became effective on January 1, 2025, and replaced the previous MFA. The new MFA also includes a renewal option, at McDonald's discretion, for a new, 20-year MFA, beginning January 1, 2045.
As previously announced, the new MFA includes a royalty fee of gross sales of 6.0% for the first ten years, 6.25% for the subsequent five years and 6.5% for the final five years.
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