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I wonder if the franchise owners who fail are disproportionately minorities.
For example, if the failure rate is 15% for all franchises, I would expect 15% of each demographic of franchise owner to fail. If the data show that, say, 85% of failed franchise owners are minorities, I would definitely like to see McDonald's explain that.
The article mentions that store location is the top predictor of franchise success. Is McDonald's blocking these Black franchise owners from opening stores in good locations? Are Black franchise owners more likely to choose bad locations? I would be surprised if either answer is yes. There must be something substantial going on beneath the surface if a lawsuit was filed.
Very interested to see where this goes.
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- 4 years ago
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- reuters.com/article/us-m...
Because they’ve been accused of giving minority franchise owners worse locations than non-minority franchise owners (which is discriminatory and illegal)