McDonald's is revamping its system of recruiting franchisees to bring in more diverse candidates, report says

• McDonald's is shaking up its policy for recruiting franchisees, CNBC and the Wall Street Journal report.
• US president Joe Erlinger said the company wanted to represent "the diverse communities we serve."

McDonald's is restructuring its strategy for recruiting and retaining franchisees, the Wall Street Journal and CNBC reported Thursday.

The fast food chain is hoping to recruit more diverse candidates, CNBC reported, citing an internal memo.

Joe Erlinger, the US president of McDonald's, said the chain wanted to "represent the diverse communities we serve," CNBC reported, citing the internal message to franchisees.

"We've been doing a lot of thinking about how we continue to attract and retain the industry's best owner/operators – individuals who represent the diverse communities we serve," he wrote.

McDonald's did not immediately respond to Insider's request for comment on the memo's contents.

The fast food giant has come under fire in the past for its handling of franchised locations.

Last year, a black McDonald's franchisee who operated 14 stores in the US brought a lawsuit against McDonald's, accusing the company of racial discrimination.

Herbert Washington alleged that the chain had "steered" him and other black franchise restaurant owners towards locations in poorer neighborhoods where they made less profit, Insider's Kate Duffy previously reported.

Less than a year earlier, 52 Black former McDonald's franchisees filed a complaint accusing McDonald's of "systematic and covert racial discrimination."

McDonald's operates over 38,000 locations in around 100 countries, according to the company website. There are 13,000 franchised locations in the US.

The fast food chain has previously announced diversity initiatives, including shakeups in the recruitment process and hiring a new chief diversity officer.

In December 2021, the company also committed $250 million to help franchisees from diverse backgrounds grow their businesses, USA Today reported at the time.

According to the Wall Street Journal, the new franchise plans will also see franchisees being made to a undergo a stringent review every 20 years to determine if they can keep their franchises.

"This change is in keeping with the principle that receiving a new franchise term is earned, not given," an email to franchisees shared by the Journal said.

Under the new plans, where family of franchisees would previously have been prioritized for open positions, all potential future candidates will be assessed using the same criteria starting in 2023, CNBC reported.