McDonald's discriminates against Black franchisees, lawsuit claims
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Source: Reuters
(Reuters) - McDonalds Corp has been sued by 52 Black former franchise owners who accused the fast-food giant of racial discrimination by steering them to depressed, crime-ridden neighborhoods and setting them up for failure.
In a complaint seeking up to $1 billion of damages, the plaintiffs said McDonalds has not offered profitable restaurant locations and growth opportunities to Black franchisees on the same terms as white franchisees, belying its public commitment to diversity and Black entrepreneurship.
The plaintiffs said McDonalds saddled them under its standard 20-year franchise agreements with stores requiring high security and insurance costs, and whose $2 million average annual sales from 2011 to 2016 were $700,000 below the nationwide norm. Bankruptcy often resulted, they said.
Its systematic placement in substandard locations, because theyre Black, the plaintiffs lawyer Jim Ferraro said in a phone interview. Revenue at McDonalds is governed by one thing only: location.
Read more: https://www.reuters.com/article/us-mcdonald-s-lawsuit/mcdonalds-discriminates-against-black-franchisees-lawsuit-claims-idUSKBN25S3ZK
McDonalds denies the accusation, of course ...
iluvtennis
(19,852 posts)RhodeIslandOne
(5,042 posts)And that includes franchisees saying they don't want to go into "certain neighborhoods".
progree
(10,904 posts)Black former franchisees sue McDonald's for discrimination
https://www.democraticunderground.com/10142573253
Auggie
(31,167 posts)Apologies to all. Thanks for the heads-up.
llashram
(6,265 posts)tis American culture, financial or otherwise.
Bengus81
(6,931 posts)It was a franchise owned by a black woman dating back to at least the late 80's, early 90's. I think she was the first black woman to own a franchise if I remember right. Her location is almost across the street from Wichita State University so it does a hell of a business.
But....one thing that McDonald's has allowed over the last few years is for mega franchise holders to buy all of them they can get their hands on. In Wichita there is one franchise owner who now owns almost every MD in Wichita.
Omaha Steve
(99,618 posts)Dupe. See the earlier post here: https://www.democraticunderground.com/10142573253
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