Prepare a case study that requires critical thinking. The case study should include related questions and guiding answers.

J.C., Inc., had a franchise agreement with McDonalds Corporation to operate McDonalds restaurants in Lancaster, Ohio. The agreement required J.C. to make monthly payments to McDonalds of certain percentages of the gross sales. If any payment was more than 30 days late, McDonalds had the right to terminate the franchise. The agreement also stated that even if McDonalds accepted a late payment, that would not constitute a waiver of any subsequent breach. McDonalds sometimes accepted J.C.s late payments, but when J.C. defaulted on the payments in July 2010, McDonalds gave notice of 30 days to comply or surrender possession of the restaurants. J.C. missed the deadline. McDonalds demanded that J.C. vacate the restaurants, but J.C. refused. McDonalds files a lawsuit alleging that J.C. had violated the franchise agreement. J.C claimed that McDonalds had breached the implied covenant of good faith and fair dealing. Which party should prevail and why?