Advertisement

As a Black owner of a McDonald’s business, my big fear is California politicians | Opinion

As a Black owner of a McDonald’s business, my big fear is California politicians | Opinion
Percy Johnson

After 19 years of working in corporate America, I found myself stuck at a standstill. I was passed up twice for promotions, and, as a Black man, I knew I had reached a career ceiling.

As a father of two young kids, I started looking for opportunities to control my own destiny. I found those opportunities in the franchise model.

After completing a rigorous two-year franchisee training program with McDonald’s, I took a risk, cashed out my retirement and jumped at the first opportunity to purchase a franchised restaurant in Sacramento. Owning a local franchised restaurant completely changed my trajectory and gave me the opportunity to start building stability, security and generational opportunity for my family.

That’s why I am fiercely opposed to Assembly Bill 1228.

ADVERTISEMENT

Opinion

AB 1228 would force national fast-food corporations to exert significantly more control over local franchised restaurants like mine. This misguided bill attempts to make national fast-food corporations legally liable for employment and personnel decisions made at my local restaurants. By creating a new avenue to file lawsuits against fast-food corporations, AB 1228 means more lawsuits against local restaurant owners too.

As a result, the corporations will be left with no choice but to take more control over the franchisee’s operations — robbing thousands of small business owners of our livelihoods and erasing much of the progress we’ve made to build economic equity and opportunity for our families.

As a franchisee, the success or failure of my small business falls on me, not the corporate parent.

I built this business from the ground up. I developed, trained and nurtured my team of employees, and I often lie awake thinking about the future of our family’s business. AB 1228 would wipe out the equity I’ve created in owning a small business.

It’s no secret that Black Americans have been historically boxed out of opportunities to build businesses and success for our families and communities. But the franchise model empowers Black Americans to pursue business ownership. In fact, nearly 50% of local McDonald’s franchised restaurants in California are owned and operated by people of color. With people of color only accounting for 14% of business ownership across the nation, you would be hard-pressed to find a business model that provides more opportunities for people of color.

Showing my kids what it’s like to be my own boss has been a dream come true, and now I’m proud to be in business with them as they own and operate restaurants of their own. Since buying our first restaurant, we’ve worked hard to grow our family business to eight restaurants, supporting over 300 jobs here in Sacramento.

We are very proud not just of the way we treat our employees, but the way we give back to our community. One of the most rewarding ways we’ve been able to give back is by sponsoring the Sacramento Black Chamber of Commerce’s Young Leadership Collaboration Program which is designed to help close the achievement gap by equipping young people of color with mentorship and the tools necessary to pursue entrepreneurship.

It’s no surprise that many of the young entrepreneurs we mentor are drawn to the franchise model. But if AB 1228 passes, franchised restaurants may no longer exist. (A hearing for the bill was postponed on July 11 but AB 1228 could be heard again in August).

Faced with more liability, the corporate brands will have no incentive to continue the franchise model. One likely outcome is that the corporations will turn franchises into corporate-owned and managed restaurants. Up-and-coming entrepreneurs will miss out on the opportunity, and existing franchisees like me could lose our small businesses.

Legislators should reject this unfair and unjustified legislation.

Sacramento resident Percy Johnson owns seven McDonald’s franchise restaurants in Sacramento County.