Arcos Dorados Master Franchise Agreement

Strength of the McDonald`s franchise: The evaluations also include McDonald`s strength as a franchisor and the long-standing relationships with the owners and management of Arcos Dorados. The Master Franchise Agreement (MFA) sets out strategic, commercial and financial guidelines for Arcos Dorados` business, which support the company`s operational and financial stability and the underlying value of the McDonald`s brand in the region. Fitch expects McDonald`s to continue to support Arcos Dorados` business as it has in the past. Arcos Dorados benefits from the cult brand McDonald`s, but faces different regional economic challenges. About 69% of these restaurants are operated by Arcos Dorados, the rest being franchised restaurants. It has the exclusive right to own, operate and grant franchises of McDonald`s restaurants in 20 countries and territories in Latin America and the Caribbean with more than 2,200 restaurants operated by the company or its sub-franchisees and together employing more than 100,000 people (as of 30.06.2020). The company is also committed to developing the communities in which it works in order to offer young people their first formal job opportunities and to use its Scale for Good to have a positive impact on the environment. . . .

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