12:42 PM EDT, 05/09/2024 (MT Newswires) -- McDonald's (MCD) will begin requiring US franchisees next year to pay for a new digital marketing fund as part of efforts to modernize its marketing strategy and widen competition, CNBC reported Thursday, citing a memo.

The company plans to utilize the investment in improving its loyalty program and increasing ordering channels, the memo reportedly said.

Franchisees were asked to use their existing marketing contribution to fund the new initiative, but in 2025 they will be required to contribute 1.2% of projected identified digital sales, with rates adjusted annually, the report added.

The report said franchisees in the UK, Canada, Australia and Germany will also contribute to the global digital marketing fund, followed by remaining markets later.

McDonald's did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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