McDonald's Offers to Help Franchisees Rebuild
Oak Brook, Illinois-McDonald's Corp. agreed to provide at least $500,000 in financial aid to owner-operators who are expected to rebuild their restaurants when their franchises expire, reversing earlier plans to make operators pay the full cost. The agreement will help franchisees with about a third of the cost of rebuilding the older stores they lease from the company.
As part of the package, the burger giant will pay up to $475,000 toward the cost of the rebuilding project and will grant owner-operators a new 20-year franchise agreement that coincides with the construction. The company also will allow franchisees to defer payment of a $45,000 franchise fee for up to seven years. The fee is typically due on the signing of a new deal. -Nation's Restaurant News