Simon Peel Formerly of Jitterbit, IBM and Cast Iron Systems recently discussed McDonald’s seeking the dismissal of a racial discrimination lawsuit presented by former franchisees.
LONDON, UNITED KINGDOM / The McDonald’s restaurant chain is currently seeking the dismissal of a racial discrimination lawsuit presented by former franchise owners. The lawsuit was filed by more than 52 former franchise owners. Simon Peel Formerly of Jitterbit, IBM and Cast Iron Systems explains.
“McDonald’s representatives asked for a dismissal, explaining that they want every one of their franchisees to thrive,” Simon Peel said. “They also stated that the allegations were extremely vague.”
Simon Peel Simon Peel Formerly of Jitterbit, IBM and Cast Iron Systems said that the complaint was put forth by 52 black franchisees. Their stated claims were of breach of contract, fraud, and intentional racial discrimination. Moreover, Simon Peel explained that McDonald’s claimed the statute of limitations for such arguments had passed. The lawsuit was filed in Illinois where the statute of limitations for discrimination is just four years.
“The plaintiffs’ case is based on the theory that McDonald’s went into business with black franchise owners solely to watch them fail,” Simon Peel said. “These plaintiffs claim that the company wants them to fail despite their interest in seeing other restaurants, which are not black-owned, succeed.”
McDonald’s representatives state that although it’s true that these claims were made, the McDonald’s company has a vested interest in the success and profitability of all franchisee restaurants. However, Simon Peel Formerly of Jitterbit, IBM and Cast Iron Systems added the franchisees claim they were steered toward low-income neighborhoods where insurance and security expenses were high and sales were lower resulting in losses of roughly $4-5 million per restaurant.
“McDonald’s seems to be taking this case extremely seriously,” Simon Peel said. “However, losses of $4-$5 million in a single demographic should be looked into.”
Simon Peel Simon Peel Formerly of Jitterbit, IBM and Cast Iron Systems added that this is the fourth lawsuit filed against the company this year regarding racial discrimination. Former discrimination lawsuits against McDonald’s in 2020 include two cases alleging harassment and retaliation regarding race. One is in the state of Florida and one in Illinois. Another lawsuit was filed by two senior McDonald’s executives who claimed the chain pushed black franchisees away and fired African-American leadership unlawfully.
“This is an important time for McDonald’s to establish itself as a non-discriminatory company,” Simon Peel said. “But if the company is found guilty of such allegations, it’s imperative their executives make major systemic changes.”