52 former franchisees accuse McDonald's of racial discrimination in lawsuit
More than four dozen former franchise owners, all Black, have accused McDonald’s of “systematic and covert racial discrimination” and setting them up to fail, despite the company’s public commitment to racial equality.
In a federal lawsuit filed late Monday, the 52 plaintiffs allege the company intentionally placed their restaurants in economically depressed and high-crime locations that had higher operating costs, frequent employee turnover and lower sales. The conditions positioned them for lower profits and failure — a “financial suicide mission” — the lawsuit said.
The plaintiffs, whose franchises date to 1981 and who left the company within the past decade, also allege that McDonald’s:
• Retaliated against Black franchisees who rejected being placed in high-crime communities.
• Denied them financial support and assistance often afforded to White franchisees.
• Excluded Black franchisees from growth opportunities at restaurants in more-profitable communities where White franchisees were often placed.
• Had no justification for its pattern of denying Black franchisees better franchise opportunities over the years.
• Unfairly graded operations at Black-owned restaurants, which led to poor internal reviews and pushed out Black franchisees.
• Misled Black franchisees into purchasing franchises in difficult locations.
Read more: https://www.washingtonpost.com/business/2020/09/01/mcdonalds-franchisees-discrimination-lawsuit/
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