McDonald's said Wednesday it will launch a franchisee recruitment initiative to increase the number of new franchisees from all backgrounds, including historically underrepresented groups, in domestic and international markets and help finance franchisees.

The initiative is three-pronged, focusing on recruiting, financing and development, according to a statement from McDonald's President and CEO Chris Kempczinski.

The company will significantly expand franchisee recruitment and training efforts including historically underrepresented groups, increasing ownership opportunities for new franchisees both in restaurants owned and the number of qualified franchisees.

McDonald's also plans to aid future franchisees who otherwise might have difficulty securing financing. In the U.S., the Chicago-based burger chain will commit $250 million over five years to provide alternatives to traditional financing for historically underrepresented candidates.

"This barrier may be particularly felt by candidates from different backgrounds, including from historically underrepresented groups. To address the issue, we will seek to reduce upfront equity requirements for eligible franchisee candidates. In the U.S., for instance, McDonald's will commit $250 million over five years to provide alternatives to traditional financing to candidates," Kempczinski said in a message viewed by QSRweb. "We're building on our industry leadership in restaurant management to expand learning and development programs for all franchisees."

Kempczinski admits "meaningful change does not happen overnight or with a one-size-fits-all solution" but said franchising is a source of strength for McDonald's.

McDonald's has been building upon the strong diversity, equity and inclusion programming the brand established in July 2020. As of 2020, historically underrepresented groups accounted for 29.6% of all U.S. franchisees.

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