McDonald’s Corp has been named as the defendant in a lawsuit filed by Black franchisees, who accuse the Chicago-based company of racial discrimination.
Four-store Tennessee franchisees and brothers, James and Darrell Byrd, said in the Chicago federal suit that the chain led them to purchase poorly-performing locations. The proposed class action is seeking damages of up to $5 million per store, according to Reuters.
The Byrds’ attorneys filed a previous suit on Aug. 31 against the massive fast food chain saying that McDonald’s put Black franchisees in stores in blighted areas that required higher costs and yield lower sales. In that case, 52 Black former McDonald’s franchisees were listed as plaintiffs.
For its part, McDonald’s has denied the allegations and last week moved to dismiss the suit filed in August that sought $1 billion in damages. The latest suit was filed in U.S. District Court for the Northern District of Illinois.
