1851

McDonald’s has agreed to pay $33.5 million to a Black franchisee who filed a racial discrimination lawsuit against the QSR franchise in February, <a href="https://apnews.com/article/sports-business-discrimination-race-and-ethnicity-racial-injustice-a12c6c026e47aca98d3da27d8b84db1d?utm_source=1851franchise.com&utm_medium=article&utm_campaign=mcdonalds-settles-racial-discrimination-lawsuit-with-franchisee-for-335-million-2717527" target="_blank" rel="nofollow">according to the Associated Press</a>. Herb Washington, a former baseball player and owner of more than a dozen McDonald’s locations in Pennsylvania, filed <a href="https://apnews.com/article/mlb-lawsuits-oakland-athletics-ohio-us-news-fb0865e9a066fc0dca8b75f85ccb90be?utm_source=1851franchise.com&utm_medium=article&utm_campaign=mcdonalds-settles-racial-discrimination-lawsuit-with-franchisee-for-335-million-2717527" target="_blank" rel="nofollow">a lawsuit in February</a> that claimed the company favored white owners and denied him the opportunity to buy restaurants in more affluent communities.“McDonald’s has targeted me for extinction,” Washington said when he originally filed the suit. “The arches are in full-scale retaliation mode against me.” He also added that the company had demanded he sell some of his stores before he could receive contract extensions for others.Washington agreed to drop the lawsuit and exit his franchise agreement as part of the settlement. McDonald’s said in a <a href="https://apnews.com/article/cleveland.com/business/2021/12/mcdonalds-pays-335-million-to-end-racial-discrimination-lawsuit-filed-by-black-owner-herb-washington.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=mcdonalds-settles-racial-discrimination-lawsuit-with-franchisee-for-335-million-2717527" target="_blank" rel="nofollow">statement</a> Thursday that the amount it was paying Washington for 13 franchises was “no more than what we deem a fair price for the value of the restaurants.”“While we were confident in the strength of our case, this resolution aligns with McDonald’s values and enables us to continue focusing on our commitments to the communities that we serve,” the company said. “Discrimination has no place at McDonald’s.”In September 2020, more than 50 Black former franchise owners filed a <a href="https://1851franchise.com/mcdonalds-faces-1-billion-discrimination-lawsuit-from-52-black-ex-franchise-owners-2713798">$1 billion discrimination lawsuit</a> against the company. A suit in January also accused the company of <a href="https://1851franchise.com/dozens-of-black-mcdonalds-franchisees-are-cutting-ties-with-the-golden-arches-2711810">pushing Black executives from senior leadership</a> under former <a href="https://1851franchise.com/mcdonald-s-ceo-steve-easterbrook-fired-over-relationship-with-employee-2711491">CEO Steve Easterbrook</a> and current CEO Chris Kempczinski, as well as forcing Black operators out of the system.&nbsp;Related articles:<ul><li><a href="https://1851franchise.com/mcdonalds-faces-another-lawsuit-over-alleged-harassment-of-black-workers-and-diners-2714085#stories">McDonald's Faces Another Lawsuit Over Alleged Harassment of Black Workers and Diners</a></li><li><a href="https://1851franchise.com/mcdonalds-faces-1-billion-discrimination-lawsuit-from-52-black-ex-franchise-owners-2713798">McDonald’s Faces $1 Billion Discrimination Lawsuit From 52 Black Ex-Franchise Owners</a></li><li><a href="https://1851franchise.com/dozens-of-black-mcdonalds-franchisees-are-cutting-ties-with-the-golden-arches-2711810#stories">Dozens of Black McDonald’s Franchisees Are Cutting Ties with The Golden Arches</a></li></ul>

McDonald’s Settles Racial Discrimination Lawsuit with Franchisee for $33.5 Million

1851 Franchise

As part of the settlement, McDonald's will purchase 13 restaurants owned by former pro baseball player Herb Washington, who sued the legacy franchisor earlier this year.

mcdonalds-settles-racial-discrimination-lawsuit-with-franchisee-for-335-million

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

1851 Franchise Deep Dive graphic with Sparkle Squad logo

Sparkle Squad Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-sparkle-squad-franchise-costs-fees-profit-and-data

graphic image of a financial deep dive of americas swimming pools co.

America’s Swimming Pool Company Franchise Costs, Fees, Profit and Data for 2025

americas-swimming-pool-asp-franchise-deep-dive

image of The Cleaning Authority Franchise Deep Dive Article financial investment details

The Cleaning Authority Franchise Costs, Fees, Profit and Data for 2025

the-cleaning-authority-franchise-deep-dive

JEI Learning Center Franchise Deep Dive 2025 - 1851 Franchise

JEI Learning Center Franchise Costs, Fees, Profit and Data for 2025

jei-learning-center-franchise-cost-profits-data

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

McDonald’s Settles Racial Discrimination Lawsuit with Franchisee for $33.5 Million

MORE STORIES LIKE THIS