Being racist can be a costly affair.
McDonald’s reached a settlement in a legal case with Herb Washington, a Black franchise owner who accused the company of racial discrimination. Washington, a former professional baseball player and once the largest Black franchisee for McDonald’s in the U.S, operated 14 McDonald’s restaurants when he filed his lawsuit back in 2017.
According to REVOLT reports, McDonald’s agreed to pay $33.5 million to settle the lawsuit, acknowledging that “discrimination has no place at McDonald’s.” The company stated that this amount was a fair sum considering the value of the restaurants, especially since Washington was asked to drop the racial discrimination lawsuit and part ways with his 13 McDonald’s outlets.
McDonald’s commented, “The court did not find that the company violated any laws. Discrimination has no place at McDonald’s. 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.”
Washington claimed that he was discriminated against by being given low-volume restaurants in predominantly Black areas and later being forced to downsize his business after the company unfairly evaluated his locations.
In a statement, Washington expressed, “When I stood up for myself and other Black franchisees, McDonald’s began dismantling my life’s work, forcing me to sell one store after another to white operators.”
Recently, McDonald’s announced a $250 million initiative to recruit and support franchise owners from minority communities over the next five years.
Herb Washington is a former track star from Michigan State University who played for the Oakland Athletics in the mid-1970s for parts of two seasons.
