Question 1 | HSBC-Marcia-Chatelain-Franchise-Owner-Lawsuits

Question 1 | HSBC-Marcia-Chatelain-Franchise-Owner-Lawsuits

Question 1

How do the lawsuits brought by Black franchise owners against McDonald’s in 2020 and 2021 reflect broader historical patterns of racial inequality in corporate America, and in what ways do they illustrate continuity or change from earlier struggles faced by Black business owners?

Answer

The lawsuits highlight long-standing issues of racial inequality, including McDonald’s redlining practices that confined Black franchise owners to less profitable locations, mirroring struggles from the late 1960s and ’70s.

These lawsuits represent a significant shift, as they mark the first time Black franchise owners openly challenged corporate policies, indicating progress in racial equality within the fast-food industry.

The lawsuits reflect the end of racial disparities in the franchise system, as McDonald’s responded by eliminating the practices that disadvantaged Black franchisees.

The lawsuits focused primarily on financial disputes and did not raise broader questions about racial inequality or systemic issues within McDonald’s.