Business Finance
Franchise dispute and resolution memo

Question Description

Your firm represents John McGee, a franchisee of McDonald's. Suzie, a customer of John's, claims to have gotten food poisoning after eating Chicken McNuggets and is threatening to sue John. Your managing partner has requested that you perform legal research and determine what rights and liabilities John has in this situation and what needs to be done under the laws of your state and the franchise agreement to have the franchisor held fully, jointly, or partially liable for Suzie's injuries.

Your memo should be 3-4 pages in length. Incorporate at primary legal sources (statutes, court opinions) to support your work. Format citations and references per Harvard Blue Book rules

State is MN if needed. Please have reference page

Final Answer



Franchise Dispute and Resolution Memo
Institutional Affiliation




To: John McGee
Cc: McDonald’s Company
Date: 10/3/2018
Subject: Franchise Dispute and Resolution
Franchising is a common trend in business today. Various definitions of a franchise
are given as follows. It refers to a business, in which the owner sells rights to their property
like logos, names and models to another company. The company selling their rights is the
franchisor while the firm buying them is the franchisee. The legal point of view identifies the
franchise as a type of license (Bogdaneris, 2016). The main reason for this definition is the
fact that the franchisor licenses its brand name together with its way of conducting business
operations to another company. In return, the franchisee agrees to carry out the transactions
according to the terms and conditions that are set. Franchise businesses constitute a significant
percentage of the growth of the economy of the United States of America. It creates more than
twenty million job opportunities to the economy of the country (Emerson, 2015). The Federal
law has various definitions for a franchise: a strong association that has a trademark, payment
of a fee and finally, as a business plan where the franchisee gets the franchisor’s products to
the market.
Many franchise businesses have failed due to lack of proper agreements (Emerson,
2015). The agreement between the two parties should include the rights of each party in
various circumstances. If the franchisee is not keen, then the franchisor could deny them their
rights. The franchisee, in this case, is being sued for food poisoning by a customer. As the
representative of the franchisee, John has the right to local dispute resolution. He also has a



right to protection under the courts and various laws of its jurisdiction. Additionally, John has
a right to access the franchisor as well as receive representation by the same party. Although
there is usually an agreement between the franchisor and the franchisee, every entity is
independent in its operations (Bogdaneris, 2016). Franchisees often make their own decisions
including employment, lay off and salary conditions among others. Nevertheless, when
misconduct occurs, franchisors often find themselves facing lawsuits instead of the franchisee.
Such misconduct relates to empl...

Marrie (17819)
University of Virginia

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