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McDonald’s franchisee settles suit

Herb Washington claimed discrimination, bought out for $33.5 million

YOUNGSTOWN — McDonald’s USA and Youngstown franchisee Herb Washington have agreed to settle a racial discrimination lawsuit he and his company, HLW Fast Track, brought against the fast food chain.

In exchange for Washington agreeing to leave the McDonald’s system and to dismiss the federal lawsuit, McDonald’s has bought his 13 restaurants for $33.5 million, according to a statement from McDonald’s. Washington’s restaurants are in Ohio and Pennsylvania.

The amount, according to the statement, is “no more than what we deem a fair price for the value of the restaurants.”

Washington, who is black, alleged in the lawsuit from February that McDonald’s, as part of an effort to reduce black ownership, targeted Washington with unfair grading and assessments designed to make it impossible for him to operate his restaurants.

When Washington protested the way he was being treated, that “intensified McDonald’s campaign to drive him from its system,” the suit states.

Washington once owned 27 restaurants.

At the time the lawsuit was filed, McDonald’s responded that the situation was the result of years of mismanagement by Washington, whose restaurants, according to a statement from the chain, had a public record of health and sanitation concerns.

Also, Washington “has failed to meet many of our standards on people, operations, guest satisfaction and reinvestment,” the company said in a statement from February.

A notice to dismiss was filed Friday in the case.

The court did not find McDonald’s violated any laws, according to the company’s statement.

“Discrimination has no place at McDonald’s,” the company said in the statement. “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.”

A message left with Washington seeking comment Friday was not returned.

The court in August ruled in favor of McDonald’s on a counterclaim against Washington by ordering a franchise agreement for a store in Euclid terminated, dropping his franchises to 13.

Seven of the restaurants were in the Mahoning Valley: Newton Falls, Austintown, Youngstown, Mineral Ridge, Boardman and Poland. The other restaurants are in Cleveland and Hermitage, Sharon and Greenville in western Pennsylvania.

Washington grew up in Flint, Mich., and attended Michigan State University on a track scholarship, narrowly missing the 1972 Olympic track team and later played for the Oakland Athletics Major League Baseball team from 1974-1975. Four years later, he became a McDonald’s franchisee.

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