Posted on 10/30/2020 6:05:57 AM PDT by dynachrome
The proposed class action led by James and Darrell Byrd, brothers with four McDonalds restaurants in Tennessee, was filed by the law firm representing 52 Black former franchisees who filed a similar lawsuit on Aug. 31.
McDonalds was accused of placing Black franchisees in undesirable inner-city locations with high security and insurance costs and below-average sales, and driving many away by failing to support them as debts rise and profits fall short.
Jim Ferraro, a lawyer for the plaintiffs, estimated that McDonalds has 186 Black franchisees in the United States, down from a peak of 377 in 1998, who own 700-plus stores.
The lawsuit, filed in federal court in Chicago, where McDonalds is headquartered, seeks damages of $4 million to $5 million per store, potentially totaling more than $3 billion.
In a statement, McDonalds USA said it has an obvious interest in the franchisees success, and invested significantly in the Byrds franchises after they encountered difficulties. McDonalds said it will defend against the lawsuit.
(Excerpt) Read more at reuters.com ...
I’m sure they all have college degrees in business management also right? /s/
Generally not. The franchise agreement typically protects the owner from oversaturation by prohibiting the placement of other franchises for the same brand within close proximity. When a person offers to buy a franchise, the sponsor will advise them of the available locations.
I’m lovin’ it!
I don’t understand the problem
History teaches that a black inner city franchise will be rescued by having the daughter become the princess wife of an African Royal in spite of his mothers objection to a commoner.
I’ve seen the movie. It’s true
Firm I once worked for did work for a KFC franchisee, KFC provided manuals for standard everything.
As to locations, the KFC location producing the most revenue nationally was located at 125th Street and Lenox Avenue in Harlem...not exactly a nice neighborhood. Owner became a millionaire almost overnight, oh and he was/is black.
If you know the location of the property before you sign the contract, that seems like it’s your problem. Just add features to the store that keep it secure and clean. Change the drive thru to drive by.
I’m pretty sure McDonalds isn’t the biggest land owners in the country.
I think the Catholic church own that honor and then the Salvation Army next.
In terms of dollar value? Surely not acres.
Oh no you’re totally told where to be. McD’s has thousand of sites selected and controls who goes where. First timers always get locations they think will be mid revenue, because those are the least profitable and hardest to run. Test by fire.
They should get a McDowell’s Franchise...
Seeing as how most McDonalds are on an acre or less, I would say in terms of value.
and its not just poor....its also the clientele if we can admit that...
They do. But it’s take it or leave it. McD’s makes a franchisee go through a lot before they get one of the good locations. You’ve first got to prove yourself in mid-volume low profit locations, then you get the relative vacation of low-volume locations (which have lower overhead and tend to make a decent profit) until finally, at probably your 7th or 8th location, you get something cherry. If you want to get on the path to making good cash as a McD owner you go where they say.
Yo obviously don’t understand how franchising works, with McDonald’s or anyone else. No competent company allows one franchisee to impact another except in the most minimal manner. Also whether you are Black, Brown, Yellow, Red, White or Rainblow you have to be a fool to not understand that new franchises are going to be available in areas that were not already exploited.
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