Developments Across McDonald’s cases Draw Attention to Franchise System Practices

Developments Across McDonald’s cases Draw Attention to Franchise System Practices 

Recent rulings highlight similar allegations across executive and franchisee cases, drawing renewed attention to how decisions are made within the system


A federal judge in the Northern District of Illinois has allowed key claims of racial discrimination and breach of contract to move forward in a case brought by longtime McDonald’s franchise operator. The ruling permits claims involving alleged racial steering in store assignments, denial of rent relief, and discriminatory inspections to proceed, along with a breach-of-contract claim related to the franchise agreement.


The development comes alongside a recent ruling in a separate case involving former McDonald’s executives, where a federal judge allowed key racial harassment and retaliation claims to move forward to trial. According to public filings in that case, the executives raised concerns about the treatment of Black franchise operators—issues that are also central to cases brought by former franchise owners, including McPherson.


“The court’s recent decisions to grant a trial for the two former Black Executives and to deny McDonald’s motion to dismiss against this former Black Franchisee suggests people are not simply crying wolf about McDonald’s discriminatory practices,” said Attorney Rallins, one of the lawyers for Loevy & Loevy representing the former McDonald’s franchise operators. “Issues involving store placement, financial support, and how franchisees are evaluated are evaluated are being examined through the legal process, and we believe they deserve full consideration.”


“The issues being raised in McPherson are very familiar,” said Van Jakes, a former McDonald’s franchise operator and plaintiff in separate litigation. “Over time, when standards change or the finish line keeps moving, succeeding becomes much harder—especially when those standards aren’t applied the same way to everyone.”


Broader Context

In McPherson, the court allowed claims to proceed involving:

● Allegations of discriminatory treatment in store assignments

● Stark disparities in financial support, including rent relief

● Differences in store inspections and discriminatory evaluation processes

● Questions around whether Black franchisees received equal access to benefits and opportunities as their white counterparts


Current Status

● The former Black Executives is scheduled for trial in September 2026.A federal jury will hear about alleged violations of Vickie Guster-Hines’ and Domenica Neal’s civil rights under 42 U.S.C. § 1981 (which protects the equal right of all persons to make and enforce contracts without respect to race), and Title VII of the Civil Rights Act of 1964, which prohibits employment discrimination based on race, color, religion, sex and national origin.

● In addition to Ms. Guster-Hines’ and Ms. Neal’s revelations, more than 40 Black former McDonald’s franchisees collectively sued McDonald’s for unfair policies, unequal treatment, and illegal discrimination. The Manning franchisee litigation is waiting on a ruling from the Court

● McDonald’s former Black franchisee, McPherson, brought a separate lawsuit in 2023. On March 27th, despite McDonald’s motion to dismiss, the court ruled that McPherson’s claims for racial discrimination in contracting and leasing will move forward.


Media Contact / Availability

Former franchise operators are available for interviews to discuss:

● Business impact and firsthand experience

● How recent rulings relate to broader concerns

● What these developments mean for franchise ownership and communities

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