Question: Panera the bakery caf chain had a clause in its lease
Panera, the bakery/café chain, had a clause in its lease that prevented the White City Shopping Center in Shrewsbury, Massachusetts, from renting space to another sandwich shop: “Landlord agrees not to enter into a lease, . . . for a bakery or restaurant reasonably expected to have annual sales of sandwiches (emphasis added) greater than ten percent (10%) of its total sales . . . ” Panera asked a Massachusetts Superior Court to block the Shopping Center from leasing space to a Qdoba Mexican Grill on the grounds that a lease with the Grill would violate the terms of the Panera lease. How should the Court rule? Explain.
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