The Financial Post reports in its Saturday edition that McDonald's is boosting the fees it charges United States and Canada franchisees to operate some restaurants. A Bloomberg dispatch to the Post reports that owners who open new restaurants or buy locations previously run by McDonald's will have to pay the parent 5 per cent of sales, up from the current rate of 4 per cent, according to a message signed by chief financial officer Ian Borden (document reviewed by Bloomberg). This rate will also apply to restaurants the company buys and then sells to an operator. Franchisees will continue to pay 4 per cent in many other cases. Restaurants that change hands as a result of a transaction between franchisees will not be subject to the new rate, and operators that sign new 20-year agreements will not either. Transfers from current owners to next-generation family members are also unaffected. The memo noted that the rate had not changed in about 30 years. Royalties on franchised store sales vary between companies. Burger King charges 4.5 per cent, while Wendy's charges 4 per cent to 6 per cent and Subway charges 8 per cent, says Technomic. Outside the U.S., McDonald's royalties are already at 5 per cent.