The agreement includes a royalty of 6% on net sales for the first 10 years, increasing to 6.25% in the following five years, and reaching 6.5% in the final five-year period.
Arcos Dorados Holdings, a Latin American restaurant chain and the world’s largest McDonald’s franchisee, announced the renewal of its agreement with the fast-food giant for a 20-year period, with the option to extend it for another 20 years.
The new agreement establishes a royalty of 6% on net sales for the first 10 years, which will increase to 6.25% in the following five years, and 6.5% in the final five-year period.
«Over the next 20 years, we will continue working to strengthen our market position in all areas of our business, benefiting all our stakeholders,» said Woods Staton, Executive Chairman of Arcos Dorados. The agreement took effect on January 1.
The company, together with its sub-franchisees, operates 2,400 restaurants in 20 countries across Latin America and the Caribbean, generating over 90,000 jobs. From its headquarters in Montevideo, Uruguay, it has expanded the McDonald’s brand in the region, adapting to the specific characteristics and preferences of each market.
Arcos Dorados holds the exclusive rights to operate, manage, and grant franchises for McDonald’s locations in 20 countries and territories, including Argentina, Brazil, Chile, Colombia, Mexico, Peru, and Uruguay.
The company was founded in 2007, after acquiring McDonald’s operations in Latin America for US$700 million, and has since maintained its growth in the region.
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