McDonald's Black franchisees filed a class action suit against the fast-food giant, following in the footsteps of former franchiseesOn Thursday, a federal civil rights class action lawsuit was filed on behalf of current Black McDonald's franchisees in the US District Court for the Northern District of Illinois Eastern Division. Named plaintiffs are James Byrd, Jr. and Darrell Byrd, two brothers who own four McDonald's locations between them in Tennessee.
There are 186 current Black franchisees within the McDonald's system, according to Ferraro, a significant decrease from 377 in 1998. Ferrero said that the decision to be a part of the class will be made by individual Black franchisees at some point in 2021. Both former and current franchisees claimed that McDonald's restricted Black operators to neighborhoods with lower sales and higher costs. According to the franchisees' complaint, Black franchisees are primarily offered opportunities to buy locations in Black neighborhoods and less likely than white franchisees to be offered new opportunities.
James Byrd spoke with Business Insider last year about the financial gaps between Black and white franchisees at McDonald's.
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