ROCHESTER, N.Y. — McDonald's has settled a federal civil rights suit from a man who once ran the company's largest Black-owned franchise in the nation, including several in Rochester, who sued the company for racial discrimination.
The fast food chain agreed to pay Herb Washington more than $33 million for the 13 restaurants he owned.
In turn, Washington agreed to dismiss the lawsuit and leave the McDonald's system.
A former collegiate track star and one-time Major League Baseball player for the Oakland Athletics, Washington opened his first McDonald's in Rochester in 1980. He sold his Rochester restaurants in 1998 and bought a slew of locations in Ohio.
He sued McDonald's after he alleged the company forced him to sell seven of those restaurants to white owners.
The civil rights suit alleged the chain is squeezing out minority owners, many of whose stores see lower profits because of the poor neighborhoods where they're located.
McDonald's had previously claimed that Washington's locations were losing money due to poor management.
The chain issued a statement on the agreement:
"In exchange for his agreement to exit the McDonald’s System and dismiss his pending litigation, McDonald’s has purchased the thirteen restaurants owned by Herb Washington for $33.5 million, which is no more than what we deem a fair price for the value of the restaurants. 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."