McDonald's

Black franchisees have alleged weaker locations and fewer opportunities than white owners. A 2021 buyout ended Herb Washington’s suit; it was not a finding that discrimination occurred. A 2020 suit by more than 50 former Black owners was dismissed in 2022 with leave to amend.

• $33.5M store buyout
  Herb Washington alleged racial steering; McDonald’s bought his storesThe Associated Press reported that McDonald’s would pay $33.5 million to end a racial-discrimination lawsuit by Herb Washington, a Black franchisee who owned more than a dozen restaurants in Ohio and Pennsylvania. Washington alleged that the company treated white owners more favorably and denied him stores in more affluent communities, and that Black owners averaged about $700,000 less in annual sales per store than white owners. McDonald’s said the $33.5 million was no more than a fair price for 13 restaurants, that it was confident in its case, and that “discrimination has no place at McDonald’s.” Washington agreed to drop the suit and exit the system. The payment ended litigation; it is not a court finding that the allegations were proved.Source: Associated Press ↗
• Lawsuit (allegations)
  More than 50 Black former franchisees sued in 2020The same AP report said that in September 2020 more than 50 Black former franchise owners sued McDonald’s with similar allegations: that Black owners were offered stores in poor areas with higher security and insurance costs and were denied rent assistance during renovations that they said white owners received. Those are plaintiffs’ allegations in a lawsuit. This profile does not record a final trial verdict on that 2020 case.Source: Associated Press ↗