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

TruBlue Home Service Ally

TruBlue Featured in USA Today as Key Player in Helping Seniors Age Safely at Home

trublue-featured-in-usa-today-as-key-player-in-helping-seniors-age-safely-at-home

Right at Home

Right at Home Marks 30 Years With Continued Franchise Growth

Right at Home Marks 30 Years With Continued Franchise Growth, Tech Advancements, and Strong System Engagement in First Half of 2025

right-at-home-franchise-growth-2025

KidStrong Franchising, LLC

Unlocking Superpowers: How KidStrong Is Building the Next Generation of Confident Kids — and Thriving Franchise Owners

kidstrong-franchise-confident-kids

Image of a kid growing up, developing with kidstrong, high fiving and smiling. 

How KidStrong has Become the Franchise Disrupting Child Development by Partnering with Purpose-Driven Franchise Owners 

kidstrong-franchise-opportunity-child-development

Picture of kids for franchise business Kidstrong which focuses on child development and fitness

KidStrong Is Pediatrician-Recommended for Raising Confident, Capable Kids and Families Can't Get Enough

kidstrong-child-development-program

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

Image of Donald Trump pointing with red stripes in the background

August 1 Tariff Deadline Is Said to Have ‘No Extensions’: What This Could Mean for Franchises

august-1-tariff-deadline-franchise-impact

What June’s Jobs Report Means for the Franchise Industry

what-junes-jobs-report-means-for-the-franchise-industry

Drone Delivery Takes Flight in QSR: The Future of Franchise Operations?

drone-delivery-takes-flight-in-qsr-the-future-of-franchise-operations

Chick-fil-A Tops Customer Satisfaction Rankings for 11th Year as Challenger Brands Gain Ground

chick-fil-a-tops-customer-satisfaction-rankings-for-11th-year-as-challenger-brands-gain-ground

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

From Franchisee to Franchisor: How Howard Picker Is Using His Experience to Drive Sustainable Growth at Floyd’s 99

howard-picker-floyds-99-barbershop-franchise-franchisor-hot-seat

Jollibee -Launch-Story-Brand-Page-Deep-Dive-2025

Jollibee Franchise Costs, Fees, Profit and Data for 2025

jollibee-franchise-costs-fees-profit-and-data-for-2025

Bringing Robots to Main Street: How Elad Inbar’s RobotLAB Franchise Is Powering the Local AI Revolution

bringing-robots-to-main-street-how-elad-inbars-robotlab-franchise-is-powering-the-local-ai-revolution

HTeaO Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-hteaos-franchise-costs-fees-profit-and-data

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

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

Multi-Unit Wendy’s Operator Signs 12-Unit Deal With Layne’s Chicken Fingers

ricki-oberoi-laynes-chicken-fingers-growth

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise Built on Heart and Community

paris-baguette-franchise-rockaway-new-jersey-vishal-junjea

Franchisee spotlight graphic with photos of Danielle Rosemond & Usman Khan & TruBlue logo

Family Members of Local Physicians Bring TruBlue Franchise to North Central Nassau, Long Island: A Health Care-Inspired Approach to Aging in Place

family-brings-trublue-franchise-to-north-central-nassau

Top 25 Franchise Marketing Leaders: Kelsey McManemin — Vice President of Marketing, HTeaO

top-25-franchise-marketing-leaders-kelsey-mcmanemin-vice-president-of-marketing-hteao

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

MORE STORIES LIKE THIS