Earlier this week a lawsuit was filed against McDonald’s by 52 ex franchisees based on “systematic and covert racial discrimination.” The ex franchisees claim that were denied the same opportunities as their White counterparts. The lawsuit cites that the corporation “systematically steered” Black franchisees to buy locations in Black neighborhoods. As a result they were faced with higher insurance and security costs while bringing in less revenue.
Ultimately the franchisees said they were at a disadvantage when they purchased a location, so much so that they called it a “financial suicide mission.” The franchisees are looking for compensatory damages averaging $4 million to $5 million a store, with collective damages of more than $1 billion. To read more about this story click here.