On Thursday Mcdonalds were hit by a multi-billion dollar lawsuit by a black franchisee who accused the fast-food giant Mcdonalds of racial discrimination for putting them into the management of underperforming franchisees.
Mcdonalds was accused of putting the black franchisees into the intercity locations where the security and insurance costs were high and sales of the franchise were low. Which led many franchisees to leave the business as while operating their debt rises and profits fall short.
The lawsuit was filed in Chicago federal court which seeks the damages of four million to $5 million per store by adding all the damages of all the stores the amount reaches around $3 billion.
Mcdonalds based in Chicago has taken the steps to cater to the problems regarding its workplace culture and the treatment of franchisees, which also included the corporate values for the very first time since 2008.
Jim Ferraro’s lawyer for the plaintiff said that there has been a massive PR campaign to correct their image Ferraro also added that this is a good thing but not good enough.
Mcdonalds has denied the treatment for the black franchises claiming that the only concern of McDonald’s is to make them succeed in their business activities that are the only way Mcdonalds makes money. Mcdonalds also added that the idea they are putting that they were allowed to enter into the business to make them fail is simply illogical.
They also denied the lawsuit filed in January by Vicki Guster-Hines and Dominica Neal claiming racial discrimination by the two black executives.
Mcdonalds said that they are going to take these allegations very seriously as this lawsuit is challenging their corporate values and culture, being a responsible corporation it is their foremost duty to provide equal opportunities to all of the stakeholders which include employees, suppliers, and franchisees without any discrimination.
When asked by a journalist to comment on that matter the plaintiffs representative did not respond to the request to comment.
This is the fourth lawsuit against McDonald’s in that year relating to racial discrimination.
Last week Mcdonalds asked the judge to dismiss the case containing the allegation of racial discrimination, as again it said that they don’t want them to fail as it is illogical that its McDonalds concern is to make the franchisees successful, and racial discrimination is against the core values and principles of Mcdonalds.