McDONALD'S is facing a new lawsuit from Black former franchisees who say they faced decades of discrimination at the fast-food chain.
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."
The franchisees say they lost more than 200 McDonald's locations over the past decade because of misconduct by the company. The franchisees are seeking compensatory damages averaging $4 million to $5 million a store, with collective damages of more than $1 billion.
Dozens of other Black franchisees have been forced out of the chain over the past two decades, according to the complaint. The complaint says there are only 186 Black McDonald's franchisees, down from 377 in 1998.Reaad more here