McDonald’s Announced It May Offer Some Franchisees Rent Deferrals Amid the Uncertainty Due to the Coronavirus Pandemic

Millions of lives have already been impacted by the global pandemic that is COVID-19 or coronavirus — and unfortunately, some more than others. For those who can still get the job done from home, sure, it’s not the ideal situation, but it’s working out. For those in the restaurant and hospitality industries, like McDonald’s, not so much.

In the United States, “substantially all” locations are operating with only drive-thru, takeout or delivery options due to the coronavirus pandemic, CNBC reported .

This does not bode well for the fast-food giant’s franchisees, who operate about 90% of its global restaurants and who also rely heavily on daily foot traffic to turn a profit. However, Mcdonald’s announced that it may offer some franchisees rent deferrals as restaurants close or see traffic plunge, according to the CNBC article. McDonald’s also warned that the “negative financial impact” cannot be reasonably estimated at this time because it doesn’t know the duration and scope of disruptions to its business.

According to a regulatory filing, McDonald’s is working with franchisees around the global to support financial liquidity.

This week, 1851 will be co-hosting a special Franchise Community Webinar on the Coronavirus and Franchises. Register here: