As per reports, McDonald’s Corp (MCD) will be providing $250 million of low-cost, short-term loans over five years in the United States boosting diversity among its franchisees. The burger giant is also planning to increase its franchisee recruiting and development efforts globally to draw new operators from underrepresented backgrounds.
Recently, McDonald’s was under fire from current and former Black U.S. franchisees, who have filed lawsuits claiming they were steered to underperforming stores in low-income areas. However, McDonald’s has denied treating Black owners differently from other owners and has repeatedly pledged its commitment to diversity and inclusion.
McDonald’s restaurants are so expensive to buy that people from disadvantaged backgrounds find it hard to access the capital they need to own one. McDonald’s requires franchisees to have at least $500,000 of liquid assets before even entering the applicant program. Total investment for a traditional location ranges from $1 million to just over $2.2 million. Reportedly, people from historically underrepresented groups, including Black, Asian, and Hispanic, made up nearly 30% of all U.S. franchisees in 2020.
McDonald’s Corporation (MCD) is the leading global foodservice retailer with nearly 37,000 locations in over 100 countries. The Corporation operates and franchises McDonald’s restaurants in the US and across the globe with over 90% of its restaurants owned and operated by local, independent businessmen and women. To learn more about McDonald’s Corporation (MCD) and to track its progress please visit the Vista Partners McDonald’s Coverage Page.
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