Dayan v. McDonald’s Corp. (p. 9)

The client: McDonald’s Corp

Background of the case:
McDonald's gave Dayan an exclusive franchise to operate McDonald’s restaurants in Paris, France. McDonald’s required Dayan adhere to all quality, service, and cleanliness standards set by McDonald’s, Dayan agreed. The parties made an agreement which stated the reason for Dayan must maintaining QSC standards was that a “departure of restaurants anywhere in the world from these standards impedes the successful operation of restaurants throughout the world, and injures the value of [McDonald’s] patents, trademarks, trade name, and property.” Dayan promised he would not in violation of the standards unless he got prior written permission from McDonald’s. But McDonald’s found Dayan violated these standards for several years, so it wanted to terminate the franchise. Then Dayan filed a lawsuit to enjoin the termination.

Identifying the client’s problem：
McDonald’s rendered Dayan an exclusive franchise, and required Dayan comply with QSC standards; Dayan agreed. McDonald’s found Dayan in violation of these regulations, and sought to terminate the franchise; Dayan filed a lawsuit, wanted to enjoin the termination and one of the justifications was that McDonald’s was obligated to provide him with the operational assistance necessary to enable him to meet the QSC standards, but it did not. What things McDonald’s should do in order to avoid such kind of cases.

Four alternative courses of action：
1 background check for franchise owners;
2 set McDonald’s flagship store, organize new franchisees study and experience in the store before they open their new business;
3 set up McDonald’s reginal managers and supervisors in each area away from headquarter, those regional managers and supervisors are responsible for communication, management and maintenance of the franchise, and they