McDonald’s Faces $1 Billion Discrimination Lawsuit From Dozens Of Black Ex-Franchise Owners

KEY FACTS

  • 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.

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