McDonald's prepares new franchise model in Valledupar

McDonald's is preparing a new phase of expansion in Colombia through a model that brings in capital from a franchise operator. Arcos Dorados confirmed that it has signed its first agreement of this kind in the country, with the restaurant planned for Valledupar. The announcement opens up a new route for growth in Colombia's franchise sector, although the published information does not specify an opening date.

Agreement signed, opening still pending

The development was reported by Portafolio on 20 September 2026, based on comments by Diego Higuera, an executive at Arcos Dorados. He explained that the company had finalised an agreement with its first franchise operator in Colombia and that the restaurant was expected to be in Valledupar.

“We recently reached a milestone with our first franchisee — in other words, our first franchise operator in the country — and we have now finalised the agreement,” Higuera told the business publication.

An important distinction is needed here: this is the first agreement under the new model described by Arcos Dorados, not McDonald's initial entry into Colombia. The brand already has a network of restaurants and standalone ice cream outlets in the country.

Nor should the signing of the agreement be confused with an opening. In its report on 21 September, ColombiaOne described the Valledupar restaurant as a planned opening. The reports consulted do not provide an address, a construction timetable or the identity of the operator taking on the project.

Franchisee capital with company support

Under the model, a franchisee invests their own capital to open a restaurant, with advice and support from the company. According to the explanation reported by Portafolio and ColombiaOne, this is an approach McDonald's already uses in other markets.

Arcos Dorados, described in the reports as the world's largest McDonald's franchisee, is thus bringing a franchise operator into its Colombian growth strategy. The announced change concerns how new outlets are developed; the reports do not describe any changes to existing restaurants.

For the franchise sector, the key point is the involvement of an investor-operator in opening a restaurant with company backing. However, the publications provide no figures for the initial investment or royalties, nor details of the contract term or selection criteria.

The announcement therefore does not establish the cost of joining the model or its commercial terms. Nor does it confirm that applications are open to all interested parties. These matters require specific information from the company and cannot be inferred from the signing of this first agreement.

Mid-sized cities on the expansion map

Valledupar leads this new phase, while the company assesses other Colombian cities. Pulzo reported on 21 September that Tunja is among the locations under consideration where the brand does not yet have a presence. That assessment does not amount to a confirmed opening or imply that a second agreement has been signed.

According to figures reported by Portafolio, the Colombian operation has 73 outlets and 245 ice cream kiosks. The latter operate independently of traditional restaurants, so the two formats should be kept separate when describing the size of the network.

Higuera said Arcos Dorados sees scope to increase its presence in Colombia relative to the size of the population. This reflects the company's own assessment: the sources provide neither a numerical forecast for openings nationwide nor a target specifically for mid-sized cities.

Property availability also shapes growth

Expansion faces difficulties in securing sites, according to the assessment reported by Portafolio. Pulzo added that the preferred format is a freestanding restaurant with an Automac drive-through, home delivery and a car park.

These factors make finding a suitable property an important part of the project, beyond signing the agreement. However, the available information does not identify a specific site in Valledupar or confirm that the planned restaurant will have all these features.

Practical takeaway: for those tracking franchise opportunities, the verifiable milestone is the signed agreement. Before assessing an investment, prospective operators should request the financial terms, operator criteria and property requirements directly from the company, rather than treating expansion plans as completed openings.