Dayan received an exclusive franchise to operate McDonald's restaurants in Paris, France. The franchise agreement required that the franchise meet all quality, service, and cleanliness (QSC) standards set by McDonald's. The agreement stated that the rationale for 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 agreed not to vary from QSC standards without prior written approval. After several years of quality and cleanliness violations, McDonald's sought to terminate the franchise. Dayan brought this action to enjoin the termination. The lower court found that good cause existed for the termination and Dayan appealed.
1. What social or cultural factors might have affected McDonald's presence in Paris?
2. How could McDonald's have exercised greater control over its foreign franchisee?
3. What types of products or services are most suitable for foreign licensing?