McDonald’s Faces $1 Billion Discrimination Lawsuit From Dozens Of Black Ex-Franchise Owners
The lawsuit comes weeks after the world’s biggest fast food chain was among dozens of corporations to release a statement in support of Black Lives Matter and condemn racism following George Floyd’s death and nationwide anti-racism protests.
In June, new CEO Chris Kempczinski acknowledged McDonald’s had more work to do to improve racial equality and diversity within the company, after two executives filed a lawsuit against the company for allegedly pushing out Black managers and franchisees.
Despite this, Kempczinski claimed that the chain had created more millionaires in the Black community than any other company.
But the latest lawsuit, filed by 52 Black former franchise owners in a Chicago federal court, says their average sales of $2 million a year between 2011 and 2016 were $700,000 below the national average, often leading them to bankruptcy, Reuters reports.
Jim Ferraro, representing the plaintiffs, told Reuters that the number of Black franchise owners has halved to 186 over the past two decades, while a lawsuit earlier this year claims that almost a third of Black franchisees left under ex-CEO Steve Easterbrook’s tenure between 2015 and 2019.