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國際時事跟讀 Ep.K662: McDonald’s Increases Royalty Fee for New Franchise Operators in the US and Canada

Highlights 摘要：

McDonald's Raises Royalty Fee: McDonald's is increasing the royalty fee for new franchise operators in the US and Canada from 4% to 5% to align with international standards.
Impact only New Franchisees: The change primarily affects new franchisees, while existing operators are not impacted, marking a strategic shift in the company's approach.
Franchise Importance: Franchises are vital to McDonald's, with about 95% of its locations operated by franchisees, making this adjustment significant for the company's long-term growth and competitiveness.

McDonald’s is set to implement a significant change in its franchise operation structure in the United States and Canada, marking the first such alteration in nearly three decades. Effective from January 1, the fast-food giant will raise the royalty fee for franchise operators initiating new restaurants in these regions from 4% to 5% of their monthly sales. This fee, termed "royalty," is vital for McDonald's franchise operators, and this development aims to bring the North American market in line with international standards, where the 5% royalty rate is more common.
麥當勞即將對其在美國和加拿大的特許經營結構進行重大調整，這是近三十年來的首次變動。從明年一月一日起，這家快餐巨頭將把開設新餐廳的授權費率從每月銷售額的4%提高到5%。這個被稱為“授權金”的費用對麥當勞的加盟主至關重要，這項變化主要是想將北美市場與國際接軌，國際上5%的授權金更為常見。

However, it's essential to note that this modification will not impact all franchise operators. Those who are already running McDonald’s outlets and extend their leases or decide to sell their franchises to others will continue to pay the existing rate. The new rate will only apply to individuals opening a McDonald’s franchise for the first time or purchasing an existing restaurant under specific circumstances. This move also comes with a change in terminology, as McDonald’s will cease using the terms "service fee" or "service charge" in favor of "royalty" to reduce potential confusion.
然而，值得注意的是，這項改動不會對所有加盟主產生影響。那些已經在經營麥當勞餐廳並且延長了租約或決定將其加盟權出售給其他人的加盟主將繼續支付現有的費率。新的費率僅適用於首次開設麥當勞連鎖餐廳或在特定情況下購買現有餐廳的個人。此舉還伴隨著術語上的變化，麥當勞將不再使用“服務費”等術語，而改用“授權金”，以減少潛在的混淆。

McDonald's highly values its franchise system, with approximately 95% of its restaurants globally being operated by franchisees. Franchise operators pay the royalty fee to access the McDonald's brand and expertise, among other benefits. Additionally, they contribute to expenses such as restaurant renovations, which have, in the past, led to some tensions between franchise operators and the company. In 2018, the National Owners Association was formed, marking the first advocacy group created by McDonald's franchise operators.
麥當勞高度重視其加盟體系，全球約95%的麥當勞餐廳由加盟主經營。加盟者支付權利金以獲取麥當勞品牌和專業技術等好處。此外，他們還承擔了餐廳裝修等費用，這在過去曾導致加盟主與公司之間的關係緊張。2018年，麥當勞加盟主們成立了他們的首個權益團體，即“全國業主協會”。

While McDonald’s anticipates that the initial impact of this change will be limited, affecting only a relatively small number of restaurants in the US and Canada, it expects the rate to apply to more restaurants over time. With over 13,400 McDonald’s locations in the US and more than 40,300 globally. McDonald's CEO, Chris Kempczinski, emphasizes the need to make decisions for the long term to ensure continued success, a strategy that aligns with the company's impressive growth, including a 10.3% increase in sales at US locations during the quarter ending June 30.
儘管麥當勞預計這個變化的初步影響有限，僅影響美國和加拿大的相對少數餐廳，但隨著時間的推移，這個費率將適用於更多的餐廳。美國有超過13,400家麥當勞餐廳，全球則有超過40,300家。麥當勞執行長克里斯強調了需要做出長期決策以確保持續成功的必要，這個策略與公司強力的增長相符，包括截至6月30日結束的季度裡，美國分店的銷售額增長了10.3%。

Keyword Drills 關鍵字：

Franchise (Fran-chise): "Effective from January 1, the fast-food giant will raise the royalty fee for franchise operators initiating new restaurants in these regions from 4% to 5% of their monthly sales."
Renovations (Re-no-va-tions): "They also contribute to expenses such as restaurant renovations, which have, in the past, led to some tensions between franchise operators and the company."
Advocacy (Ad-vo-ca-cy): In 2018, McDonald’s franchise operators formed their first-ever advocacy group, the National Owners Association.
Anticipates (An-ti-ci-pates): While McDonald’s anticipates that the initial impact of this change will be limited, affecting only a relatively small number of restaurants in the US and Canada.
Impressive (Im-pres-sive): McDonald's CEO, Chris Kempczinski, emphasizes the need to make decisions for the long term to ensure continued success, a strategy that aligns with the company's impressive growth.

Reference article: https://edition.cnn.com/2023/09/22/business/mcdonalds-franchise-fees/index.html

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國際時事跟讀 Ep.K662: 麥當勞提高美國和加拿大新分店的授權金

通勤學英語 15Mins Today