The Strategist

McDonald's accused in racial discrimination

09/02/2020 - 03:52

More than 50 Black former franchisees of the fast food chain McDonald's have accused the company of racial discrimination and are demanding compensation in court for a total of about $ 1 billion.

The plaintiffs, who filed a complaint against the company in a Chicago court, say McDonald's executives forced their Black partners to open franchised establishments in disadvantaged areas, while requiring inflated amounts for security and insurance. 

The plaintiffs allege that such discrimination put Black franchisees at a disadvantage and often led to bankruptcy. The plaintiffs’ spokesman Jim Ferraro believes that because of this policy, the number of Black franchisees at McDonald's has decreased from 377 to 186 from 1998 to the present time. In total, more than 90% of 14,400 McDonald's enterprises are operated in the United States. 

The company itself denies racial discrimination against its franchisees and intends to defend its case in court. “We are confident that the facts will show our commitment to ensuring equal business opportunity and racial diversity throughout the McDonald's system, including our franchisees, suppliers and employees,” the company said in a statement.


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