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McDonald’s Franchisees Ante Up Less for Ads Than Asked

News, 31 July 2002


McDonald’s met last week with its US franchisees to agree an advertising budget for the next fiscal, with Big M urging a year-on-year increase in cash contributions, from 1.5% of gross sales to 1.81%.

Too much, declared the franchisee advertising committee which after much haggling agreed to up spend to 1.65% of sales – equivalent to an aggregated increase of $33 million (€33.42m; £20.1m) annually.

When invited by an AdAge reporter to comment on the outcome, Big M’s lips remained sealed.

Data sourced from: AdAge.com; additional content by WARC staff