McDonald’s settles case against black franchise owner


By Kay Jones, CNN

McDonald’s settled a complaint filed by a black franchise owner who alleged the company directed him to less profitable restaurants in low-income, predominantly black neighborhoods because of his race.

Retired Major League Baseball player Herbert Washington filed a civil lawsuit in Ohio in February, when CNN reported at the time.

Washington’s allegations were similar to complaints filed by a group of 52 former black franchise operators, who sued the company for alleged racial discrimination. Last year.

Washington, which had operated McDonald’s franchises since 1980, claimed in the lawsuit that over the years McDonald’s had made it more difficult for it to succeed compared to white franchise operators. He said the company tried to kick him out because he reported the alleged discrimination.

McDonald’s said in a statement to CNN that by agreeing to quit the McDonald’s system and dismiss its complaint, the company agreed to buy the 13 restaurants Washington owned for $ 33.5 million. They said in the statement that the money is “no more than what we consider a fair price for the value of the restaurants.”

The McDonald’s statement also said the court found no laws violated by the company.

“Discrimination has no place at McDonald’s,” the statement read. “While we were confident in the strength of our case, this resolution aligns with McDonald’s values ​​and allows us to continue to focus on our commitments to the communities we serve. “

CNN has contacted the Washington attorney for further information, but has not received a response.

The-CNN-Wire
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Danielle Wiener-Bronner of CNN Business contributed to this report.

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