Washington, a former Oakland A player, filed his lawsuit in Ohio federal court in February, saying the Chicago-based chain used to direct black owners to restaurants in poor neighborhoods that generated less. of profits. He had been a franchisee for four decades, owning McDonald’s restaurants in New York, Ohio and Pennsylvania. At one point, it was the largest black-owned McDonald’s franchise in the country with around 25 restaurants.
He alleged in the lawsuit that the fast food giant launched a campaign to oust him in 2017 for exposing “predatory and racist management practices” against franchisees.
When the complaint was filed, McDonald’s said in a statement it had invested “significantly” in its organization. “This situation is the result of years of mismanagement on the part of Mr. Washington, whose organization has failed to meet many of our standards for people, operations, customer satisfaction. and reinvestment, ”the statement said.
McDonald’s said in a statement today that the court did not find he broke the laws.
“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,” the statement said.
Washington could not be reached immediately for comment.
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The lawsuit Washington filed earlier this year against the Chicago-based company was not the first alleging racial discrimination. Over the summer, McDonald’s has beaten another costume accusing him of discriminating against the black franchise operators of four of his Tennessee restaurants.
While McDonald’s has worked to fight discrimination lawsuits, it has launched several initiatives to increase diversity within the company, including recruit more franchisees who identify themselves as members of under-represented groups and link executive compensation to diversity goals.
The deal with Washington was the second lawsuit settlement McDonald’s announced today. This morning he announced that former CEO Steve Easterbrook, who was fired for sex with subordinates, has agreed to return 105 million dollars in cash and in actions to settle a lawsuit that McDonald’s brought against him.