A fast food chain announced that it would spend $250,000,000 over five years to support and recruit minority-owned franchises
McDonald’s is paying $33.5 million to an former player who owns multiple franchises in order to settle a lawsuit against the company alleging racial discrimination.
Herb Washington, a Black owner of more than a dozen in Ohio and Pennsylvania, filed a lawsuit in February. He claimed that the company had treated White owners less favorably and denied him the chance to purchase restaurants in more wealthy communities.
According to Cleveland.com, McDonald’s stated in a Thursday statement that it paid Washington “no more” than what it considered a fair price for restaurants.
“While we were confident in our case’s strength, this resolution aligns McDonald’s values, and enables us continue focusing our commitments on the communities that we serve,” McDonald’s stated, noting that discrimination is out of place at McDonald’s.
The lawsuit filed in U.S. District Court Youngstown stated that McDonald’s wanted to steer Washington towards stores in poorer areas and that Black owners make on average $700,000.00 less per year than White owners.
According to the news outlet, the company announced last week that it will spend $250 million in five years to support franchise owners from minorities communities.
More than 50 Black franchise owners filed similar claims against the company in September 2020. According to the suit, Black former franchise owners were offered to purchase stores in low-security areas with higher insurance and security costs. They were also denied rent assistance during renovations which they claimed were provided by White owners.
Washington, a former Michigan State University track star, played parts of two seasons for the Oakland Athletics during the mid-1970s.