Dunkin Donuts sued for racial bias - Steering Blacks to Poor Areas
Monday, August 20, 2012 at 11:21PM Dunkin’ Donuts is in hot water with a group of former franchisees who are claiming that the coffee and doughnut chain discriminates against minority owners, especially African-Americans, by encouraging them to open stores in poor, less lucrative neighborhoods.
Filed over the weekend in New Jersey state court, the lawsuit alleges that Dunkin’ Brands (Nasdaq: DNKN) doles out prime store locations to white franchisees, while minorities are pushed to open franchises in “economically disadvantaged or marginal areas
Former franchise owners Reggie and Amy Pretto filed the suit in Superior Court in Middlesex County, alleging Dunkin’ Brands “steered” them to open stores in poor neighborhoods by falsely claiming that no opportunities were available elsewhere. The Prettos, an African-American couple from Montclair, NJ, also said Dunkin’ lied to them about how much money their stores would make, when in fact their stores in Maryland struggled, leading Reggie Pretty to file for bankruptcy in 2007.