NEW YORK (Reuters), McDonald’s Corp. (NYSE:) has announced that it will offer $250 million worth of short-term, low-cost loans to franchisees in five years.
Chicago-based franchisee company said that they will expand their global recruitment efforts and develop new franchisees globally to help draw operators from backgrounds less represented.
Black U.S. Franchisees, both current and past, have come under fire for their decision to open burger chains in the United States. They claim they were directed to poor-performing shops in low income areas.
McDonald’s denies treating Black owners in a different way to other owners and repeatedly reiterates its commitment towards diversity and inclusion.
A U.S. Judge dismissed a lawsuit worth $10 billion filed by Byron Allen, a media entrepreneur who claimed that McDonald’s was discriminating against Black media for advertising.
The fast-food chain has pledged to boost national advertising spending with Black media. It also tied executive bonuses and diversity goals to its diversity goals.
McDonald’s and other businesses set new diversity targets amid the national reckoning on race, which was initiated by George Floyd’s murder, a Black man by a Minneapolis cop.
McDonald’s is so costly to purchase that many people with disadvantaged incomes struggle to get the capital to make it their own.
McDonald’s normally requires that franchisees have $500,000 in liquid assets to be eligible for the application program. Traditional locations require a minimum investment of $1 million and a maximum of $2.2million.
According to the company, nearly 30% of U.S. franchisees were from historically underrepresented communities, such as Asian, Black, and Hispanic. A third of the franchisees in America were female, with nearly 30%.
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