McDonald's discriminates against Black franchisees, lawsuit claims

[Auggie]

This discussion thread was locked as off-topic by Omaha Steve (a host of the Latest Breaking News forum).

Source: Reuters

(Reuters) - McDonald’s 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 McDonald’s 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 McDonald’s 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.

“It’s systematic placement in substandard locations, because they’re Black,” the plaintiffs’ lawyer Jim Ferraro said in a phone interview. “Revenue at McDonald’s 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

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McDonald’s denies the accusation, of course ...

[iluvtennis]

1. This is good example of what systemic racism looks like. nt

[RhodeIslandOne]

3. Sure is

And that includes franchisees saying they don't want to go into "certain neighborhoods".

[progree]

2. Lots of good discussion at the earlier LBN version of this thread

Black former franchisees sue McDonald's for discrimination
https://www.democraticunderground.com/10142573253

[Auggie]

4. Shoot -- couldn't find the other thread

Apologies to all. Thanks for the heads-up.

[llashram]

5. does not surprise me in the least

tis American culture, financial or otherwise.

[Bengus81]

6. One exception here in Wichita............

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]

7. After a review by forum hosts....LOCKING

Dupe. See the earlier post here: https://www.democraticunderground.com/10142573253

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