US media is today widely reporting that over 50 black former franchisees have filed a law suit against McDonald’s claiming racial discrimination.
The complaint, filed earlier this week in a Chicago court, accuses McDonald’s of directing black franchisees to lower socio-demographic locations requiring higher security and insurance costs alongside lower-volume sales.
The filed suit stated: ‘McDonald’s intentionally and covertly deprived plaintiffs of the same rights enjoyed by white franchisees. But for plaintiffs’ race, McDonald’s would have offered plaintiffs profitable restaurant locations … rather than forcing them out after decades of sweat and tears dedicated to the franchise.’
Ferraro Law Firm representing the plaintiffs accuse McDonald’s of breach of contract and fraud, seeking compensation of circa $4 – 5,000,000 plus damages per store for 20 stores.
The law suit further alleges McDonald’s prevented the plaintiffs purchasing restaurants on the open market because of their race. The allegations further claim black franchisees were made to invest in renovations within short time frames not required of white franchisees, and denied comparable financial support similarly to white restaurant owners.
McDonald’s strenuously rejected the claims and predicted it would prevail in the litigation.
A spokesperson for McDonald’s said: “These allegations fly in the face of everything we stand for as an organization and as a partner to communities and small business owners around the world. We are confident that the facts will show how committed we are to the diversity and equal opportunity of the McDonald’s System.”
McDonald’s further provided a list refuting some of the accusations, saying the plaintiffs in the case “operated restaurants in a wide variety of communities throughout the country, a fact that undermines the allegations in their complaint.
“It is also highly inaccurate to suggest that McDonald’s evaluates Black franchisees differently than other franchisees or offers Black franchisees different financial terms than other franchisees.”
The law suit follows on news earlier this year where a McDonald’s restaurant in China banned black people from entering.
The McDonald’s restaurant was located in the industrial city of Guangzhou and closed temporarily after it banned black people. Before its closure the restaurant displayed a sign at the entrance that read – ‘We’ve been informed that from now on black people are not allowed to enter the restaurant.’ At the time of the incident it was part of wider discrimination taking place in China being reported of Chinese nationals maliciously targeting black people with Covid-19 propaganda.
While McDonald’s strenuously reject the case filed in Chicago this week, its emergence amidst the wider Black Lives Matter furore sweeping the world currently, is the last thing McDonald’s will want.
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McDonald’s black racial discrimination – 2 September 2020 – McDonald’s black racial discrimination