McDonald's has taken over the operation of two restaurants in north-west Victoria after a viral video showed a franchise owner berating an Indigenous artist while a woman attempts to tear down an Aboriginal flag.

Mildura-based Indigenous artist Robby Wirramanda filmed the video, which appears to show his neighbours, Karen Ridge and Rob Vigors, walk onto his property. Ms Ridge is seen attempting to remove the flag from Mr Wirramanda's vehicle, while Mr Vigors questions the artist's Indigenous ancestry.

“Which 1 per cent of you is Aboriginal? You’ve got nothing in you that’s Aboriginal. You make me laugh," Mr Vigors says in the video.

"OK, you can do some nice paintings and everything … don’t get me wrong, I respect that work, but you claiming to be Aboriginal? You make me laugh."

During the encounter, he urged Mr Wirramanda to share the video. "This is the problem with this country and this is the problem with so many people in this area. Let it go viral, because people like you make a mockery of true Aboriginals."