(Louisville, KY) - John Schnatter has resigned as chairman of the board of the company he founded, Papa John's International.
This comes after Schnatter admitted to using a racial slur during a conference call earlier this year.
According to Forbes, John Schnatter was on the call with marketing company Laundry Service discussing how he would distance himself from racist groups in a role-playing exercise.
Schnatter allegedly remarked about Colonel Sanders using slurs, and how African-Americans were killed in his home state of Indiana.
The comments prompted Laundry Service to terminate their contract with Papa John's.
Schnatter has also resigned from his position on the University of Louisville board of trustees.
Schnatter earlier faced backlash for blaming the NFL player protests during the National Anthem for a downturn in sales.