McDonald’s is facing a $1 billion lawsuit, with over 50 black former franchisees claiming that they were situated in less lucrative locations and not afforded equal treatment with other franchisees.
The lawsuit was filed in Illinois by 52 former franchisees with the fast food chain.
It claims that the number of black franchisees with the company has declined radically over recent years due to the alleged poor treatment.
Reuters reported that the number of black franchisees had dropped by more than 50% since 1998.
In that period the number of franchised restaurants roughly doubled.
McDonald’s labelled the claims as inaccurate and “categorically false”, according to the Financial Times.
This marks the second controversial legal battle the company has found itself in this summer.
Last month it was reported that former CEO Steve Easterbrook had engaged in a number of relationships with staff – something the chain’s policy forbids.
For this, McDonald’s took legal action against Easterbrook. Read more below: