Sunday, July 3, 2022

McDonald’s Launching $250M Initiative to Attract Diverse Franchisees

*McDonald’s is launching a $250 million, five-year initiative to attract more minority franchisees in the U.S.

The program comes amid a slew of lawsuits from former Black McDonald’s franchisees accusing the fast-food chain of engaging in systemic discrimination and denying them the same opportunities as White franchisees.

“During a period of record performance, we must challenge ourselves — even more — to invest in the future,” McDonald’s President and CEO Chris Kempczinski said in a news release, as reported by The Chicago Tribune. “Today’s announcement to attract franchisees who represent the diverse communities we serve is fundamental to that goal and builds on McDonald’s rich history and pride in reflecting those we serve.”

We previously reported that the lawsuit was originally filed by 52 Black former franchisees on Sept. 1, 2020. The claims now include nearly 300 stores with compensatory damages that average between $4 million and $5 million per store, exclusive of punitive damages.

READ MORE: VIDEO: Watch Mariah Carey Announce her Festive New McDonald’s Hustle ‘Mariah Menu’

The plaintiffs allege McDonald’s sold itself as a recruiter and developer of Black talent, profited from its Black consumer base and maintained a two-tier system that pigeonholed unsuspecting Black owners and assigned them horrible locations guaranteed to fail.

Here’s more from the Chicago Tribune:

The minority franchisee initiative will increase recruiting efforts for underrepresented entrepreneurs, many of whom may have limited access to capital, the company said. McDonald’s also will reduce upfront equity requirements for eligible candidates and leverage its network of banking partners to increase access to financing.

“Access to capital continues to be a challenge in closing the wealth gap in the U.S. — particularly for minority entrepreneurs,” said Nicole Elam, president and CEO of the National Bankers Association, which is working with minority-owned banks to help capitalize franchisee candidates.

Meanwhile, McDonald’s is giving away free food every day until Christmas Eve as part of its Mariah Carey menu. To access the available items, customers must download the McDonald’s app and visit the deals section.

Ny MaGee
Ny MaGee is an entertainment reporter with over 15 years of experience working in the film industry in areas including production and post-production, marketing, distribution, and acquisitions. She has worked for legendary film producer Roger Corman, Quentin Tarantino's production team at Miramax, the late Larry Flynt, MTV/ VH1, Hallmark Channel, Paramount, Jim Henson Co., Parade Magazine, and various LA-based companies representing above-the-line talent.




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