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

Seniors Helping Seniors®

Photo of two people, with white hair, sitting on couch, smiling at each other

Seniors Helping Seniors® In-Home Care Services Expands in Manassas and Fredericksburg, Virginia

seniors-helping-seniors-in-home-care-services-expands-in-manassas-and-fredericksburg-virginia

BooXkeeping

Tech-Driven Bookkeeping: How BooXkeeping Franchisees Are Embracing the Future

tech-driven-bookkeeping-how-booxkeeping-franchisees-are-embracing-the-future

Fitness Premier

Fitness Premier's State-of-the-Art Facilities and Multi-Discipline Approach Fuels Franchise Owner Success

fitness-premiers-state-of-the-art-facilities-and-multi-discipline-approach-fuels-franchise-owner-success

Melting Pot

Melting Pot 50th anniversary photo, featuring three people enjoying celebratory drinks and fondue

Melting Pot Celebrates 50 Years of Fondue Magic With a Year of Special Menus, New Offerings and Unforgettable Moments

melting-pot-50th-anniversary-fondue-celebration

Filta Environmental Kitchen Solutions

Kathy Turner: The Filta Franchisee Keeping LA's Kitchens Cooking (and Green)

kathy-turner-the-filta-franchisee-keeping-las-kitchens-cooking-and-green

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 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

Yum! Brands CEO David Gibbs To Retire in 2026 After 36 Years With the Company

yum-brands-ceo-david-gibbs-to-retire-in-2026-after-36-years-with-the-company

Hooters Bankruptcy - Chapter 11 - April 2025 - 1851 Franchise

Hooters Files for Bankruptcy, Sells Restaurants to Franchisee Group

hooters-bankruptcy-chapter-11-april-2025

Fly Dance Fitness Expands With First Franchise Location in Georgia

fly-dance-fitness-franchise-expansion

&pizza - Fast-Casual Pizza Chain Begins Franchising - 1851 Franchise

&pizza Embraces Franchising To Fuel Bold New Growth Strategy

andpizza-franchising-ceo-mike-burns

CFOs See Recession as Likely in ’25; Why Now Is the Time To Water the Franchise Buyer Seeds

cfos-see-recession-as-likely-in-25-why-now-is-the-time-to-water-the-franchise-buyer-seeds

Franchise Deep Dive: Studio Pilates Franchise Costs, Fees, Profit and Data

franchise-deep-dive-studio-pilates-franchise-costs-fees-profit-and-data

Franchise Deep Dive: The UPS Store Franchise Costs, Fees, Profit, and Data

franchise-deep-dive-the-ups-store-franchise-costs-fees-profit-and-data

Lindora’s New President Discusses Franchise Growth and the Future of Health and Wellness

lindoras-new-president-discusses-franchise-growth-and-the-future-of-health-and-wellness

SoBol’s President and COO Shares Growth Journey and Franchise Vision

sobols-president-and-coo-shares-growth-journey-and-franchise-vision

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025 - 1851 Franchise

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025

paris-baguette-ranks-among-top-franchises-on-entrepreneurs-franchise-500-for-2025

Florida Franchisee Reflects on Success and Growth with Sylvan Learning

florida-franchisee-reflects-on-success-and-growth-with-sylvan-learning

Military Veteran and Craft Beer Enthusiast to Bring Voodoo Brewing Co. to Toledo, Ohio

military-veteran-and-craft-beer-enthusiast-to-bring-voodoo-brewing-co-to-toledo-ohio

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

MORE STORIES LIKE THIS