Forbes said Schnatter used the N-word during a media training exercise in May. When asked how he would distance himself from racist groups, Schnatter reportedly complained that Colonel Sanders never faced a backlash for using the word.
The Falcons and Atlanta United join a list of professional sports organizations which are distancing themselves from Papa John's following the revelation of the Schnatter's remarks. As of Friday, several MLB teams have suspended their partnerships with the company.
Schnatter, who stepped down as CEO of the company last year, resigned from his spot as board chairman Wednesday after admitting to making the comment and apologizing. On Friday, the Associated Press reported Papa John's planned to remove images of Schnatter from its promotional materials.
The Associated Press contributed to this story