Dunkin Donuts accused of racial bias

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Former Dunkin Donuts franchise owners Reggie and Amy Pretto are suing the food chain for allegedly guiding them to open eateries in undesirable areas. In the lawsuit, the New Jersey couple claims Dunkin pushes African-American owners to buy in less-profitable areas.

The Dunkin Brand operates about 7,000 franchises throughout the U.S. with roughly 50 owned by African-Americans, reports the New York Post.  The case filed also states that not one Dunkin Donut franchise in Connecticut, New Jersey, or Rhode Island is owned by an African-American.

The Prettos claim they have wanted to open several Dunkin locations in New York and New Jersey in 2004, but were told nothing was available. Instead, areas in predominately black communities in Philadelphia, Baltimore, and Washington D.C. were suggested.

In the lawsuit, the Prettos claim African-American franchise owners are deliberately steered toward economically disadvantaged neighborhoods. The couple opened one franchise in Odenton, Maryland due to Dunkin’s high projected sales.  After opening, however, the Pretto’s profited far less than projected and ultimately had to sell.

Follow Carrie Healey on Twitter @CarrieHeals.