McDonald's (MCD) franchisees are facing at least $800,000 per location in upgrade costs under the company's new multiyear plan, Bloomberg News reported Tuesday, citing people familiar with the matter.

Some franchise owners are balking the cost of the new initiative and have raised concerns about the expense and lack of details in recent meetings, the report said.

The $800,000 upgrade cost comes on top of scheduled restaurant remodels costing at least $400,000, putting the total potential cost at about $1.2 million per location over several years, the report said.

McDonald's didn't immediately reply to a request for comment from MT Newswires,

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: 233.88, Change: +0.84, Percent Change: +0.36