52 Black ex-franchisees file a $1 billion racial-discrimination lawsuit against McDonald’s, claiming the company sent them on ‘financial suicide missions’ – By Kate Taylor (Business Insider) / Sept 1 2020
- Fifty-two Black former McDonald’s franchisees are suing the fast-food giant, seeking more than $1 billion in damages.
- The franchisees say they were forced to close or sell more than 200 McDonald’s locations because of “systematic and covert racial discrimination.”
- One franchisee in the complaint described acquiring McDonald’s locations as a Black franchisee as a “financial suicide mission.”
- “Based upon our review, we disagree with the claims in this lawsuit and we intend to strongly defend against it,” McDonald’s CEO Chris Kempczinski said in a video message on Tuesday morning.
McDonald’s is facing a new lawsuit from Black former franchisees who say they faced decades of discrimination at the fast-food chain.
A complaint filed by 52 former franchisees on Tuesday in the US District Court for the Northern District of Illinois is seeking more than $1 billion, collectively, in direct damages from McDonald’s.
Franchisees in the complaint said they faced “systematic and covert racial discrimination,” with the company denying them the same opportunities as their white counterparts. McDonald’s has to approve all new franchisees, and the lawsuit argues it “systematically steered” Black franchisees to buy locations in Black neighborhoods. These locations tend to have higher insurance and security costs while bringing in less revenue.
One franchisee said in the complaint that Black franchisees were at such a significant disadvantage that acquiring McDonald’s locations as a Black franchisee was a “financial suicide mission.”
Continue to article: https://www.yahoo.com/news/52-black-ex-franchisees-file-052600733.html
