scorecardA group of minority McDonald's franchisees has retained a law firm to investigate allegations of discriminatory practices at the fast-food giant
  1. Home
  2. Retail
  3. news
  4. A group of minority McDonald's franchisees has retained a law firm to investigate allegations of discriminatory practices at the fast-food giant

A group of minority McDonald's franchisees has retained a law firm to investigate allegations of discriminatory practices at the fast-food giant

Shoshy Ciment   

A group of minority McDonald's franchisees has retained a law firm to investigate allegations of discriminatory practices at the fast-food giant
Retail2 min read
chicken selects mcdonalds

Tim Boyle/Staff/Getty Images

Certain aspects of McDonald's business practices are under investigation.

  • A group of current and former McDonald's franchisees has retained a law firm to investigate allegations of discriminatory practices at the fast-food giant.
  • At least 10 current and former minority franchise owners have retained counsel at the Ferraro Law Firm, James L. Ferraro, the president of the firm and lead attorney in the investigation, confirmed to Business Insider.
  • The firm is currently investigating claims of discriminatory practices at McDonald's, a process which Ferraro said is likely to conclude in the next week or two. A claim could be filed after the investigation concludes.
  • Previous reporting by Business Insider's Kate Taylor found that there are significant disparities between McDonald's black franchisees and the rest of the system.
  • "We are not aware of, and unable to provide comment on a potential filing," a McDonald's spokesperson said in a statement. "It is McDonald's core belief that diversity and an inclusive and respectful workplace makes us stronger, and as a franchised business, the success of our organization depends on all franchisees succeeding. The company has a proud history spanning across decades of creating significant opportunities for entrepreneurship and economic growth for small business owners across the country, including McDonald's franchisees of many diverse backgrounds."
  • Visit Business Insider's homepage for more stories.

At least 10 current and former minority McDonald's franchisees have retained counsel at the Ferraro Law Firm, which is currently in the process of investigating allegations of discriminatory practices at the fast-food giant.

James L. Ferraro, president of the firm and lead attorney in the investigation, confirmed to Business Insider that the investigation involves a look into various components within the company, including financing mechanisms as well as revenue distributions.

Though Ferraro would not reveal the exact number of current and former franchisees involved in the investigation, he said it is in the double digits.

Previous reporting by Business Insider's Kate Taylor found significant disparities between McDonald's black franchisees and others in the system. Black franchisees said they are likely to be limited to owning stores in areas where sales are lower but costs, like security, are higher. Leaked internal documents showed that cash flow - or the cash earned minus the money spent by a business - at restaurants owned by black franchisees is less than the average cash flow of all McDonald's restaurants.

"We are not aware of, and unable to provide comment on a potential filing," McDonald's said in a statement. "It is McDonald's core belief that diversity and an inclusive and respectful workplace makes us stronger, and as a franchised business, the success of our organization depends on all franchisees succeeding."

Ferraro said he anticipates that the investigation will conclude in one to two weeks, after which a claim could be filed.

Read McDonald's full statement to Business Insider below:

"We are not aware of, and unable to provide comment on a potential filing. It is McDonald's core belief that diversity and an inclusive and respectful workplace makes us stronger, and as a franchised business, the success of our organization depends on all franchisees succeeding. The company has a proud history spanning across decades of creating significant opportunities for entrepreneurship and economic growth for small business owners across the country, including McDonald's franchisees of many diverse backgrounds."

NOW WATCH: The rise and fall of Pan Am




Advertisement