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Does your franchisor treat you the same as other franchisees?

On Behalf of | Mar 8, 2021 | Franchise Law |

As a franchisee, provided you do a good job, you would expect a fair shot when you apply for the franchise for further stores. You have as much right as anyone to apply to take on more premises. Some of McDonald’s franchisees claim this has not been the case.

McDonald’s under fire for alleged systemic racism

Last year a group of 70 black franchise owners filed a lawsuit against McDonald’s. They claim the company treated them differently from white franchisees and tried to push black franchisees out of specific locations to install white ones in their place. They claim the franchisor charged white franchisees less and allowed them to earn more money than their black counterparts.

Last month another black franchisee launched a lawsuit against the company. He again claimed the fast-food giant discriminated against him because of his skin color.

As an employer, if you refuse an employee the same opportunities as their colleagues due to their race or skin color, you would face legal problems. As a franchisee, you are not an employee of the franchisor. So while the same employment laws do not apply, no one should discriminate against you due to your skin color.

Franchisors have the right to make judgments about who they award franchises. They should decide based on factors, such as the person’s ability to turn a profit and satisfactorily run the store in line with the brand.

It is vital to have an experienced legal team on your side if taking on a franchisor in a legal dispute. It may seem like an impossible task to take on one of these powerful companies. Yet history abounds with stories where the little guy won.