Recent movements in the United States of America supporting the Black community have raised a lot of attention towards issues in many industries. Recently, McDonald’s has had a complaint filed against them for practicing a pattern of racial discrimination against former Black franchises.
The fast-food chain has been sued on the grounds of intentionally moving Black franchises to poorer locations where security would be required more than anything. The insurance costs would eventually increase, causing losses for the franchise owners.
The complaint against the fast-food chain has been filed in the federal court in Chicago with all the alleged claims that have been denied by McDonald’s completely for now. Despite the denied claims, the suit mentions that “McDonald’s intentionally and covertly deprived plaintiffs of the same rights enjoyed by white franchisees.”
As per the suit filed, a compensation of $4-5 million has been asked for each of the stores that have gone through the discrimination. There are 20 stores in all that have been listed down under the suit. The amount of compensation has been demanded based on the fact mentioned in the suit that “McDonald’s would have offered plaintiffs profitable restaurant locations … rather than forcing them out after decades of sweat and tears dedicated to the franchise.”
Breach of contract and fraud are two listed accusations under the case filed against McDonald’s. The compensation doesn’t include any punitive damages, as it has been mentioned by Ferraro Law Firm, which represents the franchisees.
Further allegations that entail the lawsuit are that McDonald’s purposely prevented the open sale of the restaurants in the open market because of the race of the owners of the particular restaurants. Many renovations that were not required by white owners were asked for by black owners and that too quickly.
Financial support not being offered by the fast-food giant to black franchise owners has also been mentioned as one reason for filing the case. The company rejected any claims coming from black owners by following categorization based on race, as the suit mentions.
An official statement has come from the fast-food company: “These allegations fly in the face of everything we stand for as an organization and as a partner to communities and small business owners worldwide.” The statement further explains how McDonald’s is a committed company with a diverse base that provides equal opportunities.
The company has provided a list to prove the claims wrong, which shows the number of restaurants that have been opened as a part of the chain in varied communities. The same deny some of the claims that have been detailed in the lawsuit against the company.
Another statement from the company states how the allegations are all incorrect and that, “It is also highly inaccurate to suggest that McDonald’s evaluates Black franchisees differently than other franchisees or offers Black franchisees different financial terms than other franchisees.”