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A26 u.s. news
Diaranson 2 september 2020

Black former franchisees sue McDonald's for discrimination

By DEE-ANN DURBIN portunity of the McDonald's
AP Business Writer System, including across our
More than 50 Black former franchisees, suppliers and
McDonald's franchise own- employees."
ers are suing the burger chain, McDonald's has a troubled
saying the company steered history with Black franchi-
them to less-profitable res- sees.
taurants and didn't give them In 1969, activists boycotted
the same support and oppor- four McDonald's in Cleve-
tunities given white franchi- land until the company sold
sees. them to Black owners. In
The 52 plaintiffs, who owned 1983, a Black franchise own-
around 200 U.S. stores be- er from Los Angeles sued
fore being forced to sell them the company for discrimina-
over the last decade, are seek- tion; McDonald's eventu-
ing compensation of $4 mil- ally paid him $4.5 million.
lion to $5 million per store, In 1996, McDonald's leader-
according to the lawsuit. The ship acknowledged that Black
suit was filed Tuesday in fed- franchisees weren't achiev-
eral court in Chicago, where ing parity with their white
McDonald's is based. counterparts and resolved to
According to the lawsuit, make changes. Don Thomp-
McDonald's steered Black son, the company's first Black
franchisees to stores in in- president and CEO, served
ner-city neighborhoods with from 2012 to 2015.
lower sales volumes and This June 25, 2019 file photo shows a McDonald's sign outside the restaurant in Pittsburgh. But charges of discrimination
higher security and insurance Associated Press continued. In January, two
costs. The company would Black McDonald's executives
provide them with mislead- more profitable stores in bet- "It's a Big Mac. They're the "These allegations fly in the sued the company.
ing financial information or ter neighborhoods, it says. As same everywhere." Ferraro face of everything we stand They claimed McDonald's
push them to decide quickly a result, the plaintiffs aver- also noted that the number for as an organization and shifted advertising away from
when a store became avail- aged sales of $2 million per of Black McDonald's fran- as a partner to communities Black customers, graded
able, the lawsuit says. year. chisees has fallen by half over and small business owners Black-owned stores more
Once Black franchisees By comparison, McDonald's the last two decades. The around the world," the com- harshly than white ones and
owned a store, they would be average U.S. store brought chain had 377 Black franchi- pany said. implemented business plans
asked to rebuild or remodel in $2.7 million annually be- sees in 1998; it has 186 now. "Not only do we categori- that had a discriminatory im-
within a shorter period of tween 2011 and 2016 and At the same time, the num- cally deny the allegations pact on Black franchisees.
time than white franchisees $2.9 million in 2019, the law- ber of franchised restaurants that these franchisees were At the time, McDonald's said
without the rent relief and suit says. has more than doubled to unable to succeed because it disagreed with the char-
other financial support given "Revenue is determined by 36,000. of any form of discrimina- acterization of its actions. It
to white franchisees, the law- one thing and one thing only: McDonald's Corp. denied tion by McDonald's, we are noted that 45% of its corpo-
suit says. location," said James Ferraro, the allegation and defended confident that the facts will rate officers and all of its field
Black franchise owners were the Miami-based attorney its history with Black fran- show how committed we are vice presidents are people of
also denied the chance to buy representing the plaintiffs. chisees. to the diversity and equal op- color.q

Feds want deal with North Dakota over pipeline protest costs

ment of the Army is asking Cramer called the recom- permit. The Corps has said
the Department of Justice mendation “very significant” protesters weren’t evicted
to enter into settlement ne- and the right thing to do for due to free speech reasons.
gotiations with the state “to the federal government. Traynor, who is based in Bis-
avoid protracted and costly “North Dakota assumed all marck, ruled last month the
litigation, particularly in light costs including the cleanup Corps failed to comply with
of the harm that occurred in of actions facilitated by the its own mandatory permit-
this case.” Corps of Engineers,” Cramer ting process.
The request comes following said Tuesday. The state “has “As a result, there was no lim-
U.S. District Court Judge one thing in mind and that is itation on the gathering and
Daniel Traynor’s decision to make us whole. We don’t no bond available to clean up
last month to deny the fed- go away on these things like the spoiled environment that
eral government’s motion to everybody else.” was left,” his ruling said.
dismiss North Dakota’s law- The $3.8 billion pipeline has Stenehjem said he had an ap-
suit seeking to recover more been moving oil from the pointment to speak with fed-
than $38 million in damages Dakotas through Iowa to Il- eral lawyers by telephone on
the state claimed from the linois for more than three Tuesday.
In this Nov. 2, 2016 file photo, dozens of protestors demonstrating monthslong pipeline protests years. Thousands of oppo- “We have made our de-
against the expansion of the Dakota Access Pipeline wade in almost four years ago. nents gathered in southern mands,” Stenehjem said. “I
cold creek waters confronting local police, near Cannon Ball, “I request that you consider North Dakota in 2016 and hope they are willing to ne-
N.D. engaging in settlement dis- early 2017, camping on fed- gotiate in good faith. If not,
Associated Press cussions with North Da- eral land and often clashing we will prepare for trial.”
kota to determine whether with police. Hundreds were Stenehjem said North Dako-
By JAMES MacPHER- tiate a settlement with North a reasonable resolution is arrested over six months. ta has a strong case and holds
SON Dakota for more than $38 within reach” Army Under North Dakota Attorney Gen- the upper hand in negotia-
Associated Press million that the state spent Secretary James McPherson eral Wayne Stenehjem has tions now with the federal
BISMARCK, N.D. (AP) policing protests against the wrote in his letter to Acting long argued that the Corps judge’s ruling last month.
— The Army Corps of Engi- Dakota Access oil pipeline. Assistant Attorney General allowed and sometimes en- “I wouldn’t trade legal posi-
neers is recommending that In a letter obtained by The Ethan Davis. North Dakota couraged protesters to ille- tions with the Corps,” Stene-
the federal government nego- Associated Press, the Depart- Republican U.S. Sen. Kevin gally camp without a federal hjem said.q