McDonald’s to Evaluate Franchisees on Pricing as Part of 2026 Standards Update

McDonald’s is getting ready to update its international franchising guidelines, including a new criterion that would assess franchisees based on how effectively their prices provide value to consumers. The move, which will go into effect on January 1, 2026, is part of the company’s efforts to improve uniformity across its extensive restaurant network and win back budget-conscious customers.

McDonald’s senior vice president of global franchising, development, and delivery, Andrew Gregory, informed operators in a document that CNBC was able to get that the business is adjusting expectations to make sure pricing is in line with what consumers believe to be a good bargain. “Effective January 1, 2026, we are enhancing our global franchising standards across all Segments to reinforce accountability for value leadership,” Gregory wrote.

He added that the new approach aims to create clearer, more consistent guidance so that “every restaurant delivers consistent, reliable value across the full customer experience.” Franchising standards outline how operators are expected to run their restaurants. Failure to comply can carry steep penalties, ranging from limits on future expansion to outright termination of a franchise agreement.

Since franchisees run roughly 95% of McDonald’s restaurants worldwide, internal standards can have a sweeping impact on the chain’s business model. Under the updated policy, McDonald’s will “holistically assess” how franchisees set prices, examining whether those choices reflect value rather than simply local market conditions.

Franchisees will still set prices with help from third-party advisers, but the company will now formally evaluate whether those decisions align with the chain’s value strategy. Gregory wrote that the system is designed so operators can maintain local insight while upholding broader expectations.

The announcement follows recent comments from McDonald’s U.S. President Joe Erlinger, who urged operators to stay focused on pushing value-driven promotions. The entire restaurant industry has leaned heavily into discounts and bundled deals this year as inflation-weary customers scale back spending. Restaurants must balance affordability with profitability, and the wrong pricing strategy can quickly erode margins.

For more than a year, McDonald’s has reported fewer visits and lower spending from lower-income customers. To counter the drop in traffic, the chain has launched or expanded value menus across the U.S. and major international markets such as France and Germany. Those moves have helped reverse same-store sales declines and attracted higher-income consumers who are trading down from pricier dining options.

Still, McDonald’s executives say the road ahead will be difficult. CEO Chris Kempczinski warned investors that financial strain on consumers in the U.S. and abroad is likely to persist. “We continue to remain cautious about the health of the consumer in the U.S. and our top international markets and believe the pressures will continue well into 2026,” he said during the company’s latest earnings call.

The new pricing accountability standards may frustrate some U.S. franchisees, whose relationship with the corporate side has at times been tense. An independent operators’ group has argued that McDonald’s should help fund discounts to make them sustainable for franchise owners. Previous changes, such as the introduction of a stricter grading system several years ago, sparked pushback from franchisees who said it created unnecessary pressure in an already tight labor market.

Alongside the standards update, McDonald’s is rolling out new analytical tools to help operators refine pricing and value strategies. In a separate memo to U.S. franchisees, McDonald’s USA Chief Restaurant Officer Mason Smoot emphasized that the goal is to strengthen local decision-making, not constrain it.

“While Owner/Operators continue to set their own prices and make decisions that reflect local market nuances, we’ve now strengthened individual accountability for value leadership – equipping you with approved pricing consultants, tools, and other levels that support informed choices and elevate the overall guest experience across all order points,” Smoot wrote.

With customer budgets still strained and competition intensifying across fast food, McDonald’s is betting that stronger pricing discipline backed by tighter standards and better tools will keep diners coming through the door.

McDonald History

In 1940, brothers Richard and Maurice McDonald opened a barbecue drive-in in California. In 1948, they invented the “Speedee Service System” for effective burgers, and after milkshake machine salesman Ray Kroc joined the company in 1954, he bought it in 1961 to create the modern fast-food behemoth that we know today, which expanded all over the world and introduced iconic features like Ronald McDonald and the Golden Arches.

McDonald’s Famous Menu

The chain kept growing both locally and abroad. McDonald’s first franchise outside of the US opened its doors in 1967 in Richmond, British Columbia, Canada. Approximately 34,000 stores were in operation throughout more than 115 nations and territories by the beginning of the twenty-first century. It was said that a new McDonald’s opened somewhere in the world every five hours throughout the 1990s due to the fast growth of the company. By focusing on enjoyable, reasonably priced meals and tastes that both kids and adults enjoyed, it successfully rose to the top of the family restaurant market.

Sandwiches with filet-o-fish (1965)
Pounders Quarter (1973)
McMuffins Egg (1975)
Complete breakfast menu (1977)
Happy Meals (1979)
McNuggets with chicken (1983)