Over 50 Black McDonald's Franchise Owners Sued Over Discrimination
According to the plaintiffs, their business was a failure in advance due to the demands of McDonald's to open restaurants in disadvantaged areas. The owners of the bankrupt business attribute the failure to the fact that they are black.
According to the class-action lawsuit, 52 two franchise owners are demanding $ 1 billion in compensation for being ordered by McDonald's to open restaurants in disadvantaged locations because of the skin color of the businessmen.
“It’s systematic placement in substandard locations, because they’re Black,” the plaintiffs’ lawyer Jim Ferraro said in a phone interview with Reuters. “Revenue at McDonald’s is governed by one thing only: location.”
The lawsuit was filed with the Chicago Federal Court due to the location of the defendant's headquarters.
The respondent company denies racial profiling or any kind of bias against franchise buyers because of their skin color.
“McDonald’s stands for diversity, equity and inclusion,” Chief Executive Chris Kempczinski said in a video to employees. “Our franchisee ranks should and must more closely reflect the increasingly diverse composition of this country and the world.”
According to official statistics, nearly 14,000 restaurants in the United States are moving by about 1,600 franchisees. Since the end of the last millennium, the number of black owners has made up just over 2.6 percent of the total. Over the past 22 years, the number of Black franchisees has dropped to 1.3 percent.