McDonalds has an undeviating policy of retaining absolute control over who receives new franchises. McDonalds granted to

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McDonald’s has an undeviating policy of retaining absolute control over who receives new franchises. McDonald’s granted to Copeland a franchise in Omaha, Nebraska. In a separate letter, it also granted him a right of first refusal for future franchises to be developed in the Omaha-Council Bluffs area. Copeland then sold all rights in his six McDonald’s franchises to Schupack. When McDonald’s offered a new franchise in the Omaha area to someone other than Schupack, Schupack attempted to exercise the right of first refusal. McDonald’s would not recognize the right in Schupack, claiming that it was personal to Copeland and, therefore, nonassignable without its consent. Schupack brought an action for specific performance, requiring McDonald’s to accord him the right of first refusal. Is Schupack correct in his contention?

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Smith and Roberson Business Law

ISBN: 978-0538473637

15th Edition

Authors: Richard A. Mann, Barry S. Roberts

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