More than 50 Black former McDonald’s franchise owners are suing the burger chain for discrimination.
More than 50 Black former McDonald’s franchise owners are suing the burger chain, alleging that the company steered them to less-profitable restaurants and didn’t give them the same support and opportunities given to white franchisees.
The 52 plaintiffs, who owned about 200 U.S. restaurants before being forced to sell them over the last decade, are seeking compensation of $4 million to $5 million per store, according to the lawsuit. The suit was filed Tuesday in federal court in Chicago, where McDonald’s is based. The lawsuit accuses McDonald’s of steering Black franchisees to stores in inner-city neighborhoods with lower sales volumes and higher security and insurance costs. The company would provide them with misleading financial information or push them to decide quickly when a store became available, the lawsuit says.
Once Black franchisees owned a store, they would be asked to rebuild or remodel within a shorter period of time than white franchisees, without the rent relief and other financial support given to white franchisees, the lawsuit says. Black franchise owners were also denied the chance to buy more profitable stores in better neighborhoods, it says.As a result, the plaintiffs averaged sales of $2 million per year. By comparison, the average sales for U.S. McDonald’s franchises was $2.
“Revenue is determined by one thing and one thing only: location,” said James Ferraro, the Miami-based attorney representing the plaintiffs. “It’s a Big Mac. They’re the same everywhere.”
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