Federal Rulings in McDonald’s Cases Renew Scrutiny of Franchise Practices (Chicago, IL) – A series of recent federal court rulings is drawing renewed attention to McDonald’s franchise system, as judges allow multiple discrimination-related cases involving both franchisees and former executives to move forward.
In the Northern District of Illinois, a federal judge ruled that key claims in a lawsuit brought by a longtime Black McDonald’s franchise operator can proceed. The case includes allegations of racial discrimination in store assignments, unequal financial support such as denial of rent relief, and disparities in inspection and evaluation practices. A breach-of-contract claim tied to the franchise agreement will also continue.
The decision follows a separate ruling in another federal case involving former McDonald’s executives, in which a judge allowed claims of racial harassment and retaliation to advance toward trial. According to court filings, the executives had raised concerns about the company’s treatment of Black franchise operators—issues that mirror allegations made in franchisee lawsuits.
Attorneys representing former franchisees say the parallel rulings highlight broader concerns within the system.
“The court’s recent decisions … suggest people are not simply crying wolf about McDonald’s discriminatory practices,” said attorney Rallins of Loevy & Loevy, who represents former franchise operators. “Issues involving store placement, financial support, and how franchisees are evaluated are being examined through the legal process, and we believe they deserve full consideration.”
Former franchise operator and plaintiff Van Jakes echoed those concerns, describing what he sees as shifting standards within the system.
“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,” Jakes said.
Broader Allegations
In the McPherson case, the court is allowing several core claims to proceed, including:
Alleged discriminatory treatment in store assignments
Significant disparities in financial assistance, including rent relief
Differences in inspection standards and evaluation processes
Questions over whether Black franchisees received equal access to opportunities and benefits
The lawsuit is one of several legal challenges facing the company. More than 40 Black former McDonald’s franchisees have also filed a separate, ongoing lawsuit alleging unfair policies and racial discrimination. That case is still awaiting a ruling.
What Comes Next
The case involving former executives—Vickie Guster-Hines and Domenica Neal—is scheduled for trial in September 2026. A federal jury is expected to hear claims under Section 1981, which guarantees equal contracting rights regardless of race, as well as Title VII of the Civil Rights Act of 1964, which prohibits workplace discrimination.
Meanwhile, the McPherson case, filed in 2023, will proceed after the court denied McDonald’s motion to dismiss on March 27, allowing claims related to racial discrimination in contracting and leasing to move forward.
Together, the cases are placing a spotlight on how decisions are made within one of the nation’s largest franchise systems—and whether those practices have been applied equitably.
Federal Rulings in McDonald’s Cases Renew Scrutiny of Franchise Practices
