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re: Dozens of Black former franchisees sue McDonald's, alleging 'systematic' racism

Posted on 9/1/20 at 9:10 pm to
Posted by nugget
Mostly Peaceful Poster
Member since Dec 2009
13814 posts
Posted on 9/1/20 at 9:10 pm to
quote:

It’s not like the franchise is the one losing money in a bad locale, it’s the franchisee.


The franchise definitely wants it to do well. They get a portion of sales. Doesn’t McDonalds typically own the real estate in which the business operates as well?

Posted by LSUGUMBO
Shreveport, LA
Member since Sep 2005
8493 posts
Posted on 9/1/20 at 9:11 pm to
quote:

One of the first, most successful black McDonald's owners in the country emerged in Jackson MS in the late 70s. He had something like 8-10 stores and McDs was giving him more every year. He was featured in some national publications and all that.


Roy Griggs must have trained under him- he own’s something like 15 McD’s in the Shreveport area, and I’m pretty sure he’s from Jackson. He just helped round up $100,000 to buy SPD body cams
Posted by High C
viewing the fall....
Member since Nov 2012
53730 posts
Posted on 9/1/20 at 9:14 pm to
quote:

every company under the son


Jesus hears their prayers.
Posted by lostinbr
Baton Rouge, LA
Member since Oct 2017
9292 posts
Posted on 9/1/20 at 9:23 pm to
quote:

I simply find it easily plausible that in a rush to diversify their ownership in the 1990s, McDonald’s misled franchisees into poor locations. Doesn’t take much effort to imagine.

If there’s a case here, this seems like the most likely reason. The reality is that there are a shitload of McDonald’s restaurants out there. If you think about the demographics, the areas most likely to have prospective minority owners are likely older, developed cities. How many prime locations are there that don’t already have a McDonald’s in these cities?

I could absolutely see a situation where, as you mentioned, McDonald’s is in a rush to increase minority ownership and best locations are already taken. If that’s the case, though, the lawsuit would be pretty ironic - they would basically be suing McDonald’s for even trying to increase diversity among franchisees.
Posted by slackster
Houston
Member since Mar 2009
84643 posts
Posted on 9/1/20 at 9:27 pm to
quote:

As an owner you can't just put your name on a line if credit then sit back while other idiots destroy your business.



Of course. I just can’t dismiss this case on the surface. Was it racism? Maybe at some level, but it was probably fraudulent/misleading more than anything.
Posted by AU4real35
Member since Jan 2014
16065 posts
Posted on 9/1/20 at 9:33 pm to
They’ll win easily, go ahead and settle with them. It doesn’t matter what the facts are or what the truth is, they will win.
Posted by dirtsandwich
AL
Member since May 2016
5130 posts
Posted on 9/1/20 at 9:37 pm to
Posted by Pitt Road
Floriduh
Member since Aug 2017
773 posts
Posted on 9/1/20 at 9:41 pm to
I guess they thought the timing of this suit was good, with today's climate?
Posted by LegendInMyMind
Member since Apr 2019
53613 posts
Posted on 9/1/20 at 9:47 pm to
quote:

And I will bet every single cent to my name McDonald’s lies their arse off to potential franchisees to get them to open up these stores.

Probably true, as well. That is why any potential franchisee should do due diligence and spare no expense or effort to determine if what they are getting is legit. If this were such a huge, rampant problem, there would be no shortage of disgruntled McDonald's owners to warn against getting in business with them.
Posted by slackster
Houston
Member since Mar 2009
84643 posts
Posted on 9/1/20 at 9:48 pm to
The numbers aren’t promising for MCD, assuming they’re true.
Posted by East Coast Band
Member since Nov 2010
62734 posts
Posted on 9/1/20 at 9:51 pm to
quote:

And I will bet every single cent to my name McDonald’s lies their arse off to potential franchisees to get them to open up these stores.

Mcdonald's has never been like up and comer franchise opportunities, like a Little Caesars. Mcdonald's marketing has prided themselves on successful restaurant placement.
You're not going to find a McDonald's open up in a downtrodden, low traveled place.
So, they don't advertise and encourage people to buy franchises, for the sake of opening up another one.
Posted by tiger81
Brentwood, TN.
Member since Jan 2008
18801 posts
Posted on 9/1/20 at 9:54 pm to
When I was in it, McD's got about 12-13 % of sales off the top in rent/service fees. Franchise agreement was 45 k over 20 years. Believe me, Corp wanted franchisee to succeed and did everything possible to ensure it. They didn't pass out franchises to just anyone, they like to win. As a shareholder, so do I.

Posted by tiger81
Brentwood, TN.
Member since Jan 2008
18801 posts
Posted on 9/1/20 at 9:58 pm to
One more thing, in a courtroom, BLM don't exist. Bet on the home team, if it goes that far.
Posted by Dandy Lion
Member since Feb 2010
50248 posts
Posted on 9/1/20 at 10:03 pm to
quote:

They didn't pass out franchises to just anyone, they like to win


I have heard this:


They like leveraging the real estate you find as a renter, and first option on the real estate you're appreciating on their behalf, no?

Posted by fastedLSU
BR
Member since Sep 2007
4477 posts
Posted on 9/1/20 at 10:04 pm to
“While in 1998 there were 377 Black McDonald's franchisees, today there are only 186 left standing, according to a statement from Ferraro's office. During that same period, however, McDonald's stores have increased from 15,086 to 36,059.”

Posted by tketaco
Sunnyside, Houston
Member since Jan 2010
19448 posts
Posted on 9/1/20 at 10:11 pm to
They racist to black neighborhoods.
Posted by Pedro
Geaux Hawks
Member since Jul 2008
33386 posts
Posted on 9/1/20 at 10:15 pm to
quote:

locations that are destined to fail.
I.e the ghetto
Posted by slackster
Houston
Member since Mar 2009
84643 posts
Posted on 9/1/20 at 10:15 pm to
quote:

They didn't pass out franchises to just anyone, they like to win.


I don’t disagree, which is why the numbers are pretty peculiar with respect to the black franchisees today.
Posted by prplhze2000
Parts Unknown
Member since Jan 2007
51353 posts
Posted on 9/1/20 at 11:03 pm to
You noticed that little apple and orange.
Posted by Aristo
Colorado
Member since Jan 2007
13292 posts
Posted on 9/1/20 at 11:30 pm to
quote:

does McDonald’s actually tell you where to put the store that you pay for?


No, but you can't have one too close to another one unless you own that one too.
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