McDonald’s has condemned the actions of a franchisee who was caught on camera abusing his neighbour over his Indigenous heritage, after the video went viral on social media.

Key points: Robby Wirramanda Knight is an Indigenous artist from Mildura

Robby Wirramanda Knight is an Indigenous artist from Mildura His neighbours Rob Vigors and Karen Ridge own the local McDonald's and travel agency Mildura Travel and Cruise

His neighbours Rob Vigors and Karen Ridge own the local McDonald's and travel agency Mildura Travel and Cruise Police are investigating the matter and said no charges had been laid yet

The video shows artist Robby Wirramanda Knight being confronted by his neighbours Robert Vigors and Karen Ridge over his Indigenous heritage.

Mr Knight said he posted the video on social media hoping it would help combat racial "ignorance".

The video shows Ms Ridge trying to pull down Mr Knight's Aboriginal flag and saying "it's a disgrace".

"Which half of you is Aboriginal? You are not Aboriginal," Ms Ridge said.

Mr Vigors then asked Mr Knight "which 1 per cent of" him was Aboriginal.

"You claiming to be Aboriginal? You make me laugh. People like you make a mockery of true Aboriginals," Mr Vigors said.

"What's a true Aboriginal?" Mr Knight said.

A McDonald's spokesman said the comments made by Mr Vigors were "unacceptable" and did "not reflect the beliefs of the company as an inclusive workplace".

Mildura artist Robby Wirramanda Knight said he hoped the video would raise awareness and combat racial ignorance. ( ABC Radio Melbourne: Fiona Pepper )

Until Sunday, Mr Vigors was the owner of Mildura McDonald's but in a separate statement the McDonald's spokesman said the company had "taken over the operation" of the franchise and that Mr Vigors had "left the system" and was "no longer involved".

"The matter is currently under investigation," the spokesman said.

McDonald's would not confirm whether or not their reasoning for the takeover was linked to the video. It is believed Mr Vigors was looking to step away from the business anyway.

Mr Vigors has been approached multiple times for comment on the phone and at his home.

It is understood the neighbours were arguing about Mr Vigors and Ms Ridge's dog before Mr Knight began filming.

Ms Ridge owns local travel company Mildura Travel and Cruise and replied to a Facebook message from the ABC saying she has "received death threats" and does not "feel safe commenting at this time".

Ms Ridge claims "there are always two sides to every story" and alleges "there was a great deal of harassment before this event".

Mr Knight said the dispute began when he raised issues about the couple's dog.

"Everything that unfolded here so far actually began, or I thought it began from when I'd asked her to put her dog away."

Rob Vigors and Karen Ridge were caught on camera verbally attacking Robby Wirramanda Knight over his Indigenous heritage. ( Facebook: Karen Ridge )

Mr Knight told the ABC racist attacks on Indigenous Australians had to stop and hoped the video would raise awareness.

"It's just ignorance, so if anything, if the video can help to remove a little bit of the ignorance from society it would be great," Mr Knight said.

"All I'm asking for is the old Aussie fair go. For someone to call me a government bludger is a sickening insult, especially given how hard I've worked to try and dig myself out of this intergenerational rut that I was born into."

Mildura Police Sergeant Leigh Macintyre said police were "conducting an ongoing investigation into the matter".

"No charges have been laid at this stage. Uniform police did attend," Sergeant Macintyre said.

A sit-in at Mildura McDonald's was planned for Sunday afternoon but was called off after comments from McDonald's emerged.