07:47 AM EST, 01/02/2025 (MT Newswires) -- Arcos Dorados Holdings ( ARCO ) said Thursday that it renewed its master franchise agreement with McDonald's (MCD) for the next 20 years.

The deal, which went into effect Wednesday, includes royalty fees to McDonald's of 6.0% for the first 10 years, 6.25% for the next five years, and 6.5% for the last five years, the company said.

The new deal includes a renewal option for a new, 20-year deal beginning 2045, the company added.