Most large corporations know that legal claims can come against them for almost any reason. In fact, most businesses, whether big or small, will face a lawsuit at some point during the course of their operations. Claims of discrimination and contract disputes are among the most common, and they continue to affect businesses.
Colorado readers may be interested in a lawsuit recently filed against McDonald’s involving 52 former franchisees. According to reports, the claims stem from Black former franchisees who believe that McDonald’s carried out discriminatory actions and breached their contracts. In particular, they believe that they were not given the same opportunities as white franchisees and that their restaurant locations were in low-income neighborhoods that typically had a lower volume of sales and required higher insurance and security costs.
McDonald’s stated that the decision to operate a restaurant in a particular location is at the discretion of the franchisee, though the company may recommend locations. The company also stated that high-performing franchises were sold to Black franchisees in various locations. The franchisees involved in the lawsuit claim that they faced $4 million to $5 million in losses over the years due to missed revenue and restaurant costs.
Defending against claims of discrimination and contract disputes is not easy to handle, even for big corporations in Colorado and elsewhere. Whenever such a situation arises, it is important that company owners understand what avenues they may have for handling such claims. Working with their legal counsel and exploring their defense options may allow them to work toward favorable outcomes.