McDonald's accused of pushing Black Franchise owners to bad locations
According to a recent Forbes article, McDonald’s Corporation is being sued for $1 billion dollars by dozens of former Black franchise owners who claim they were pushed to “substandard locations” that resulted in decreased revenue but increased insurance costs. The 52 former owners, who filed the lawsuit in federal court in Chicago, alleged that their average sales between 2011 and 2016 were $700,000 less than that national franchise average – and often led to bankruptcy.
Jim Ferraro, one of the attorneys for the group, noted that in the last 20 years, the number of Black McDonald’s franchise owners has decreased 50%. In another lawsuit filed earlier this year against the fast food giant, it was alleged that nearly one-third of Black franchise owners divested their ownership between 2015 and 2019.
McDonald’s categorically denied any wrongdoing.
This lawsuit is only the latest in a string of bad news for the once Golden Arches. McDonald’s is currently suing its former CEO, Steve Easterbrook. Easterbrook, who was fired last year for having a personal relationship with an employee still managed to snare a $42 million dollar severance package. McDonald’s is seeking return of the the $42 million.