McDonald’s Defeats Black Franchisees’ $1B Bias Lawsuit, For Now
McDonald’s Corp. has temporarily beat back a lawsuit by 52 Black former franchise owners who claim the fast-food giant set them up for failure by steering them towards crime-ridden, low-income neighborhoods.
The plaintiffs claim McDonald’s has not offered profitable restaurant locations and growth opportunities to Black franchisees that were on the same terms as white franchisees, despite its public commitment to diversity and Black entrepreneurship. They are seeking up to $1 billion in damages.
McDonald’s has denied wrongdoing and has said that while it may recommend store locations, franchisees make the final decisions.
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