*McDonald’s has been hit with a discrimination lawsuit by several dozen Black former franchisees, claiming the company denied them “equal opportunity to economic success” compared to white franchise owners.
Here’s more from ABC News:
In a lawsuit filed Tuesday in the U.S. District Court for the Northern District of Illinois, 52 Black former McDonald’s franchise owners say the company denied them the same opportunities as white franchisees, and steered them instead to “locations that are destined to fail.”
The lawsuit alleges McDonald’s misled these Black entrepreneurs and they were “denied equal opportunity to economic success by McDonald’s systematic and covert racial discrimination.”
It also states that Black franchisees were treated differently by being denied assistance during financial hardships that white franchisees were given, and claims the Black franchisees were denied the same growth opportunities that were offered to white franchisees.
The Black franchisees owned over 200 restaurants over the last 10 years, according to the report.
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“Each and every one of these businessmen and women tell a story of dashed hopes and lost dreams,” attorney James Ferraro, who is representing the plaintiffs, said in a statement. “The world will soon see how these 52 people of color risked everything on the Golden Arches only to be kept down, marginalized and driven to ruin.”
“Black lives matter on the streets, in our communities and they matter in Corporate America,” Ferraro added.
“McDonald’s knew or should have known that these differential revenue and operating costs of Black-operated franchises as compared to White-operated franchises are not random or due to poor management,” the lawsuit said. “These differences are statistically significant and are the result of the historical racial bias and barriers built into the McDonald’s franchise system.”
McDonald’s rejected the accusations, saying they “fly in the face of everything we stand for as an organization.”
“Not only do we categorically deny the allegations that these franchisees were unable to succeed because of any form of discrimination by McDonald’s,” the company said a statement. “We are confident that the facts will show how committed we are to the diversity and equal opportunity of the McDonald’s System, including across our franchisees, suppliers and employees.”
The franchisees are seeking up to $1 billion in damages.
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