Posted on 09/01/2020 6:55:59 AM PDT by rickmichaels
McDonald’s has been sued by 52 Black former franchise owners who accused the fast-food giant of racial discrimination by steering them to depressed, crime-ridden neighborhoods and setting them up for failure.
In a complaint seeking up to $1 billion of damages, the plaintiffs said McDonald’s has not offered profitable restaurant locations and growth opportunities to Black franchisees on the same terms as white franchisees, belying its public commitment to diversity and Black entrepreneurship.
The plaintiffs said McDonald’s saddled them under its standard 20-year franchise agreements with stores requiring high security and insurance costs, and whose $2 million average annual sales from 2011 to 2016 were $700,000 below the nationwide norm. Bankruptcy often resulted, they said.
“It’s systematic placement in substandard locations, because they’re Black,” the plaintiffs’ lawyer Jim Ferraro said in a phone interview. “Revenue at McDonald’s is governed by one thing only: location.”
(Excerpt) Read more at torontosun.com ...
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In the ghettoooooooooo...
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McDonald’s has deep pockets, lawsuit claims
Rioters need junk food for energy!
Rioting is hard work!.............
So.. the black franchisees are suing because they say the black areas they’re in are crime infested?
That sounds racist itself!
Now, I haven’t been to a McDonald’s in probably ten years, but in general if a store is dirty, dingy, and has poor customer service, I won’t stop in no matter where it is.
Black franchisees don’t like being around blacks?..................
Getting tired of them complaining every time the sun comes up 30 seconds late.
At first glance, it looks like this lawsuit might have some merit. How were the possible locations for the black franchisees picked? If they were given a list of black-majority areas only, McDonald’s might be in a bit of trouble.
But then there’s this, from the article:
[McDonald’s] also said that while it may recommend store locations, franchisees make the decisions.
No one put a gun to their heads and forced them to sign the contracts. And I guess Mickey D’s doesn’t really believe black lives matter. Sucks to be them!
McDonald’s was known, at least in the past, for doing a lot of due diligence in choosing locations to set up business.
So we are to believe, that McDonald’s intentionally sent black franchisees into marginal areas, setting them up for failure, setting them up for bankruptcy??
So McDonald’s allegedly wanted to set up stores in places where they expected they couldn’t survive?
It sounds crazy to think that McDonald’s wanted to set up businesses they expected to fail, all so the “Suits” at “Corporate” could claim that they have all these minority owned franchises. They don’t have minority owned franchises if they go out of business.
Since McDonald’s generally lends a bunch of money to each franchisee and loses a bunch of money when a store fails, I am thinking this is nonsense.
I’m also thinking about the chicken franchise I own a big chunk of. It’s in about the crappiest neighborhood I’ve ever seen.
It also returned my money in 2 years and continues with a 50% ROI each year. Literally been the difference between me working until 72+ and thinking about retiring now, just on what’s it’s made, to date.
I am sure affirmative action had a fair amount to do with the failure.
Unqualified people do a crap job — example: Obama.
How stupid or maybe naive are Black owners not to realize that putting their stores in depressed and crime-ridden areas will cause them to suffer the same fate as stores that previously selected those locations. Clean up the neighborhoods and you have an opportunity to build and succeed. What’s that definition of insanity - doing the same things over and over and expecting a different result (also the same definiton of socialism, previously tried and failed everywhere).
I see Rooters has climbed on the bandwagon of capitalizing “black.” I’ll never do that in the context of race.
” who accused the fast-food giant of racial discrimination by steering them to depressed, crime-ridden neighborhoods and setting them up for failure. “
Boy....where would that possibly be, you “bigot”?
Makes sense; black ball players don’t like being around blacks either.
I think there are some "Oprah's" and "Magic Johnson's" who are doing quite well with their McDonald franchises.
"...locations for McDonalds restaurants..."
Its a shame that I am writing this, but it needs to be said.
In this political climate, why would any white males willing conduct business with blacks, women or the LGBQ crowd? The system is so stacked against you, you’re just setting yourself up for a law suit. I know many businessmen who feel this way, but can not openly express it.
> My understanding is that it is tough sledding to make a go owning just one franchise location. <
I would imagine so. And here’s the key question. Suppose a black guy applied for his first franchise. Was he given a list of all possible locations in his town, or just all possible black-majority locations?
It would seem to me that this would be easy to prove, one way or the other.
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