McDonald's Happy Meals Might Be More Expensive Next Year

Micky D's is doing away with its Happy Meal Rent & Service Fee.

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Shutterstock

It doesn't matter whether you're three or 33, the McDonald's Happy Meal is just a good deal. You can load up on fries, chicken nugs, and get a timely little toy momento for a few bucks. Or at least, you could. Past tense

The golden-arched fast food joint is likely raising prices on its Happy Meals in the new year. Following a two-decade-long deal, McDonald's will no longer subsidize the price of toys for franchisees, which means most locations will be forced to raise prices—at least a little.

McDonald's had previously issued a $300-a-month stipend for 14,000 US restaurants, dubbed the "Happy Meal Rent & Service Fee," to help manage the extra cost, according to an internal message from the company and obtained by CNN Business. Ultimately, Micky D's felt it was "no longer fueling growth in the way it once was," but not without its backlash. A collective of the McDonald's franchises, known as the National Owners Association, said it "does not support, nor did we endorse" the decision to nix the subsidy. 

Ultimately, whether Happy Meal prices go up or not is dependent on individual locations, as the restaurants are responsible for pricing. That doesn't, however, mean franchisees are accepting the change quietly.

"We believe the Happy Meal rebates represent a token of partnership and acknowledgment by the company that each owner [and] operator invests to drive affordable family business to our restaurants," the NOA said in a statement. 

For its part, McDonald's is looking to resolve the tension. According to CNN, the company plans to provide different subsidies to franchisees, having already dropped $100 million in marketing initiatives.

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Megan Schaltegger is a staff writer at Thrillist.