Arcos Dorados (NYSE: ARCO) has the exclusive rights to McDonald's in 20 Latin America and Caribbean countries ("LATAM"). Arcos Dorados ("the Company") was established in 2007 when it signed a Master Franchising Agreement ("MFA") that gave it exclusive rights to own, operate, and grant franchises in LATAM for 20 years. The Corporation was spun-out of McDonald's Corporation (NYSE: MCD) to a group composed of senior executives including current CEO Woods Staton and private equity investors. Under the MFA, Arcos Dorados is responsible for brand building in LATAM; net of the brand building adjustment, it must pay royalty fee to Mcdonald's Corporation totaling 5.0% of USD gross sales.
As of FYE 2012, Arcos Dorados owns a portfolio...
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