Court To Take On Buyout Deal Between McDonald’s And A Black Franchisee Alleging The Former Of Racial Discrimination
An Ohio federal court is handling a franchise buyout for the dissolution of the racial discrimination case filed against McDonald’s by one of its ex-franchise holders. It is reported that McDonald’s will pay $33.5 million to purchase plaintiff Washington’s 13 franchise stores in order to end the lawsuit.
Herbert L. Washington v. McDonald’s USA, LLC, et al.
What Is The Case About
Filed by Herbert L. Washington, the McDonald’s Black Franchisee Lawsuit alleges that the fast-food giant is guilty of providing preferential treatment towards white franchisees while being stricter on black-owned locations.
Washington, who owned more than ten McDonald’s franchise locations across the states of Ohio and Pennsylvania, took the fast-food company to court for reported infractions.
The complainant shared that he first set up a McDonald’s location in Rochester, New York, three decades ago. Business went well, and he decided to sell off his chain of New York franchise stores the following decade. Then, he went on and bought more McDonald’s places in Ohio.
It is said that McDonald’s decided to cut advertising budget and increase rental rates on plaintiff Washington in a bid to run his food business aground and favor caucasian franchise owners instead.
The McDonald’s Black Franchisee Buyout Settlement argued that McDonald’s coerced Washington to sell his successful stores that all went under the ownership of a caucasian franchisee. Additionally, he was also forced to sell off less lucrative businesses under his leadership.
Nevertheless, McDonald’s denied the allegations of racial discrimination and pointed out mismanagement as the culprit to the plaintiff’s unsuccessful franchise locations.
Editor’s Note on McDonald’s Black Franchisee Buyout Settlement With Herbert L. Washington:
This court report gives you the latest insight surrounding the events in the racially motivated suit filed against McDonald’s by one of its minority franchise entrepreneurs. We also suggest you read the Kaiser Healthcare Race Settlement For $11.5 Million.
Case Name(s) & No.(s): Herbert L. Washington v. McDonald’s USA, LLC, et al.; Case No.: 4:21-cv-00367
Jurisdiction: United States (U.S.) District Court for the Northern District of Ohio Eastern Division
Allegation(s): McDonald’s engaged with racially discriminatory practices that put black franchisees at a disadvantage compared to their white peers.
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