The McDonald’s restaurant chain will continue operating in Panama for the next 20 years thanks to the renewal of the contract between the fast food company and its franchisee in Latin America, Arcos Dorados Holding.

The new agreement, which entered into force on January 1, 2025, includes an extension option for another 20 years and establishes new financial conditions.

According to the terms of the contract, the franchise will pay a royalty of 6% on net sales during the first ten years, from the eleventh year, this figure will increase to 6.25%, and during the last five years it will reach 6.5%.

Woods Staton, executive chairman of Arcos Dorados, said he was satisfied to have reached an agreement to renew his relationship with McDonald’s, assuring that they are the best restaurant operator in Latin America and the Caribbean.

“Over the next 20 years, we will work even harder to consolidate our market leadership in all aspects of our business, for the benefit of all our stakeholders,” Staton said.

The renewed agreement interconnects Arcos Dorados with one of the most recognized brands internationally, which will contribute to its sustained growth in a competitive market, so this decision highlights the trust that McDonald’s places in its Latin American franchisee, considering its adaptation and performance in the region.

Arcos Dorados’ link with McDonald’s also has a significant impact on job creation and economic development in the countries where it operates.