McDonald’s has agreed to pay $33.5 million to settle a lawsuit from a franchise owner who alleged racial discrimination by the company, the Associated Press reported.   

Herb Washington, a former baseball player who’s Black and owns over a dozen restaurants in Pennsylvania and Ohio, sued the fast-food giant earlier this year, saying it favored white franchisees and denied him the opportunity to buy McDonald’s restaurants in richer neighborhoods.   

As part of the settlement, Washington will no longer be a franchisee. The company said the amount it was paying for his 13 restaurants was “no more than what we deem a fair price for the value of the restaurants.”  

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“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,” the company said, according to AP. “discrimination has no place at McDonald’s.”  

Washington claimed that McDonald’s urged him to own stores in poorer neighborhoods, according to AP. “Black owners average around $700,000 less in annual sales per store than white owners,” the lawsuit read.   

According to Cleveland.com, McDonald’s announced two weeks ago it would spend $250 million over the next five years to recruit and support franchisees in minority neighborhoods.