Collo vs McDo

Antibes · Côte d'Azur — 1987 › 2002

Collo vs McDo

Eleven years of work, three restaurants, twelve million francs — and the story of a franchisee who refused to stay silent, all the way to the Court of Cassation.

The case in one line

  1. 1987

    Lease-management agreement (location-gérance) in Antibes

  2. 1995

    A Quick with a drive-through opens 300 m away

  3. 1996

    McDo responds: “Antibes Nord”

  4. 1997

    Collapse — the matter goes to court

  5. 1998

    Judgment, termination, eviction

  6. 2000

    The Court of Appeal rules the termination wrongful

  7. 2002

    Cassation: appeal not admitted

A word from Bernard Collorafi

Dear internet users, I worked with McDonald's® as a franchisee for nine years, without the slightest problem.

In Antibes, I had turned a restaurant in the Carrefour shopping centre into a showcase establishment for the brand. I devoted eleven years of my life and nearly twelve million francs to it. Then a competitor set up three hundred metres away, and the logic was turned upside down: to counter it, McDonald's multiplied its own restaurants in my catchment area — and let me go under.

“This termination was wrongful, carried out in bad faith.”

Paris Court of Appeal — 8 March 2000

When I could no longer pay fees that had become unsustainable, the clauses were invoked, termination was ordered, then eviction. I refused to stay silent. The Paris Court of Appeal eventually recognised it — but the fight went on all the way to the Court of Cassation, and all the way to Strasbourg.

This site brings together all the documents of this fight: rulings, written submissions, expert reports, correspondence, press. Nothing is hidden. You be the judge.

Key document

8 March 2000 · Paris Court of Appeal, 16th chamber A

The judgment of 8 March 2000

The Court partially overturns the judgment and holds the termination wrongful: the orders to pay invoking the termination clause were served in bad faith. McDonald's should have proposed an overall plan over eighteen months.

  • Automatic termination rejected
  • 4,528,333 F in fixed assets + non-pecuniary damage
  • Costs: three quarters borne by McDonald's
Full summary sheet ›

The summary

What the Court rules

The termination clause is binding on the judge, but it must be applied in good faith (art. 1134 Civil Code). The SEBOL (Carrefour) and B & O (Antibes Nord) restaurants form an economic entity designed in synergy against the competitor Quick. McDonald's, which knew of the losses, should have proposed an overall plan over eighteen months; the one-off amendment was derisory. As the orders to pay were served in bad faith, the termination is wrongful.

But the damage is limited: even with this plan, the companies would have remained loss-making. No loss of a chance of profitability.

Read the full summary sheet ›

Timeline of the case

Eleven years, 87 documents

From the lease-management agreement in Antibes (1987) to the judgment of the Court of Cassation (2002) — the whole case file, in the order of the proceedings.

19955 documents
01/01H&R review 04/09Le Figaro Économie — openings drive hiring 26/10La Tribune — net earnings per share: +17% 01/11Investir — fierce competition in the United States 03/11Les Échos — McDonald's still a hit on the stock market
19964 documents
01/03Franchise Magazine 01/12PME & Affaires 16/12Registered letter Collorafi → McDonald's 16/12Letter Collorafi → McDonald’s (Aix)
199717 documents
10/01Registered letter Collorafi 17/01Letter Collorafi → Aix 27/01Letter Collorafi → lawyer 31/01Registered letter Collorafi → McDonald's 12/02Registered letter McDonald's 27/03Registered letter McDonald's 25/04Letter McDonald's 05/05Letter lawyer → McDonald's 27/06Registered letter Collorafi → McDonald's 22/07Registered letter McDonald's 01/08Registered letter Collorafi → McDonald's 01/09Letter Collorafi → Aix 22/09Registered letter McDonald's 23/09Registered letter Collorafi → Aix 03/10Registered letter Collorafi → McDonald's 09/10Registered letter Collorafi → McDonald's 20/10Registered letter McDonald's
199819 documents
15/01Written submissions — McDonald's 15/01Written submissions in summary proceedings 04/02Gandur report 09/02Hearing submissions — part 1 09/02Hearing submissions — part 2 01/03SEPT report 16/03Written submissions 16/03Written submissions in reply 16/03McDonald's written submissions in reply — part 1 16/03McDonald's written submissions in reply — part 2 18/05Judgment — Paris Commercial Court 29/05Writ of summons in appeal summary proceedings 09/06Writ of summons 09/06Written submissions (enforcement judge) 10/06Aix Court of Appeal 25/06Written submissions in summary proceedings — McDonald's 25/06Written submissions in appeal summary proceedings 03/07Order 09/12Judgment
199911 documents
02/02Minutes of expert meeting 04/03Statement no. 1 — Collorafi 12/03Competition law and contract law 12/03Viability and competition (Diebolt · Durrieu) 16/04Brief — McDonald's 09/06Minutes of expert meeting 16/06Statement no. 5 — Collorafi 16/07Brief — McDonald's 15/10Court-ordered expert report 14/12Appeal submissions — Collorafi 14/12Appeal submissions — McDonald's
20009 documents
08/03Judgment of 8 March 2000 — Paris Court of Appeal 09/03Criminal Code — art. 313-1 (fraud) 09/03Declaration of the Rights of Man (extracts) 14/03La Franchise no. 6 14/03L'Officiel de la Franchise no. 6 20/03Letter Collorafi → lawyers 21/03Letter Collorafi → members of parliament (loi NRE) 22/03Letter Collorafi → members of the European Parliament 23/03Letter Collorafi → mayors of France
200113 documents
10/01Cassation — McDonald's application 07/03Cassation — defence to application 19/03Cassation — supplementary deliberation 20/03ECHR — application 04/04Cassation — order 03/05New economic regulations (NRE) 20/06Writ of summons — Grasse Regional Court (TGI) 14/09Antibes Commercial Court 21/09Judgment — Antibes Commercial Court 01/10Cassation brief — Collorafi 01/10Cassation brief — McDonald's 26/10Antibes Commercial Court judgment — SARL B & O 26/10Antibes Commercial Court judgment — SARL Les Pins
20029 documents
01/02Statement of claims — SARL B & O 01/02Statement of claims — SARL Les Pins 01/02Statement of claims — SA SEBOL 02/02Untruths 03/02Untruths (2) 04/02Untruths (3) 05/02Untruths (4) 06/02Untruths (5) 06/05Judgment of the Court of Cassation

The 87 documents

Cleaned, OCR-processed, dated. Each document opens online in the viewer.

Rulings

9 documents

Judgments and orders.

Judgment — Paris Commercial CourtJudgment of the first chamber of the Paris Commercial Court joining two sets of proceedings. On one side SEBOL, the company B et O, Bernard Collorafi and…18 May 1998 › Aix Court of AppealNotice of appeal lodged on 10 June 1998 by the companies SEBOL (SA), B et O (SARL) and LES PINS (SARL), and by Mr Bernard Collorafi, against the SA…10 Jun 1998 › OrderOrder made in summary proceedings by Jean Mazars, acting under delegation from the First President of the Paris Court of Appeal, on the writ of summons of the companies SEBOL…3 Jul 1998 › JudgmentJudgment after full hearing of the Paris Court of Appeal (16th chamber, section A, 24 pages) ruling on the appeal lodged by the companies SEBOL, B et O, LES PINS and Mr…9 Dec 1998 › Judgment of 8 March 2000 — Paris Court of AppealThe Paris Court of Appeal holds the termination wrongful: for lack of good faith, McDonald's is ordered to compensate the franchisee.8 Mar 2000 › Antibes Commercial CourtJudgment of the first chamber of the Antibes Commercial Court ordering the compulsory liquidation of SA SEBOL, a company operating under the brand…14 Sep 2001 › Judgment — Antibes Commercial CourtJudgment of the first chamber of the Antibes Commercial Court, between SA Crédit du Nord and SARL B et O, a company of the franchisee Bernard Collorafi…21 Sep 2001 › Antibes Commercial Court judgment — SARL B & OJudgment of the first chamber of the Antibes Commercial Court opening insolvency proceedings against SARL B et O (restaurant business…26 Oct 2001 › Antibes Commercial Court judgment — SARL Les PinsJudgment of the first chamber of the Antibes Commercial Court, delivered on the declaration of cessation of payments of SARL Les Pins (restaurant…26 Oct 2001 ›

Written submissions

20 documents

Written submissions, briefs, statements and writs of summons of the parties.

Writ of summons — Grasse Regional Court (TGI)Writ of summons served by a bailiff at the request of McDonald's France before the Grasse Regional Court (TGI), directed against Bernard and…20 Jun 2001 › Written submissions — McDonald'sDefence pleadings of McDonald's France replying to the claim of Mr Collorafi and his companies, and setting out McDonald's claims for an order…15 Jan 1998 › Written submissions in summary proceedingsWritten submissions filed for SEBOL, B et O and EURL LES PINS, represented by Bernard Collorafi, before the President of the Paris Commercial Court, at…15 Jan 1998 › Hearing submissions — part 1Written submissions (first part) filed for Mr Bernard Collorafi and the companies SEBOL, B et O and LES PINS, for the hearing of 9 February 1998.9 Feb 1998 › Hearing submissions — part 2Written submissions filed for the companies SEBOL, B et O and Les Pins (voluntary intervener) and for Mr Bernard Collorafi, by Maître Jean-Paul Clément (counsel), before the…9 Feb 1998 › Written submissionsWritten submissions filed by the Clément firm (Maître Jean-Paul Clément) for the companies SEBOL, B et O, LES PINS and Mr Collorafi, before the 1st chamber of the…16 Mar 1998 › Written submissions in replyWritten submissions in reply filed for the companies SEBOL, B et O and LES PINS, and for Bernard Collorafi in his personal capacity, before the first…16 Mar 1998 › McDonald's written submissions in reply — part 1First part of the written submissions in reply of McDonald's France, replying to the claims of Bernard Collorafi and his companies (SEBOL, B et O, Les Pins).…16 Mar 1998 › McDonald's written submissions in reply — part 2Written submissions in reply filed by McDonald's France (lawyers and SCP Vincent Molas Léger Cusin, hearing representative) against the companies SEBOL, B et O…16 Mar 1998 › Writ of summons in appeal summary proceedingsBailiff's deed served on 29 May 1998, constituting a writ of summons in summary proceedings in the context of an appeal, at the initiative of the franchisee's companies, directed against…29 May 1998 › Writ of summonsWrit of summons served at the request of the companies SEBOL, B et O and Les Pins and of Bernard Collorafi, against McDonald's France, before the enforcement judge of the…9 Jun 1998 › Written submissions (enforcement judge)Writ of summons served at the request of the companies SEBOL, B et O, Les Pins and of Mr Bernard Collorafi, against McDonald's France, before the enforcement judge of the…9 Jun 1998 › Written submissions in summary proceedings — McDonald'sWritten submissions filed for McDonald's France before the First President of the Paris Court of Appeal, in response to the application for a stay of enforcement…25 Jun 1998 › Written submissions in appeal summary proceedingsWritten submissions in appeal summary proceedings filed for the companies SEBOL, B et O and LES PINS and for Mr Bernard Collorafi, dated 25 June 1998.25 Jun 1998 › Statement no. 1 — CollorafiStatement addressed to the experts Jean-Luc Dumont and Alain Martin by Maître Jean-Paul Clément (counsel), on behalf of Mr Bernard Collorafi and the companies SEBOL, B et O and Les Pins…4 Mar 1999 › Brief — McDonald'sBrief addressed by McDonald's France (Leloup firm, Maître Jean-Marie Leloup) to the experts Jean-Luc Dumont and Alain Martin, appointed by the judgment of the Court…16 Apr 1999 › Statement no. 5 — CollorafiStatement produced by Bernard Collorafi in the court-ordered expert proceedings, setting out his observations on the minutes of the expert meeting of 11…16 Jun 1999 › Brief — McDonald'sBrief of McDonald's France addressed to the experts Jean-Luc Dumont and Alain Martin, signed Jean-Marie Leloup. It forms part of the expert assessment ordered by the judgment…16 Jul 1999 › Appeal submissions — CollorafiConsolidated written submissions after the expert report (no. 2) filed before the 16th chamber A of the Paris Court of Appeal (RG 98/14119) for the companies SEBOL, B et…14 Dec 1999 › Appeal submissions — McDonald'sWritten submissions in response filed for the company McDonald's France, respondent, before the 16th chamber A of the Paris Court of Appeal, against Bernard Collorafi and…14 Dec 1999 ›

Correspondence

28 documents

Registered letters between Collorafi, McDonald's and the lawyers.

Registered letter Collorafi → McDonald'sLetter from Bernard Collorafi to Denis Hennequin, chairman and chief executive of McDonald's France, concerning the forthcoming opening of the Antibes restaurant…16 Dec 1996 › Letter Collorafi → McDonald’s (Aix)Letter from Bernard Collorafi to Isabelle Kuster, regional management of McDonald's France in Aix-en-Provence, following a meeting on 13…16 Dec 1996 › Registered letter CollorafiPersonal letter from Bernard Collorafi, McDonald's franchisee, to Denis Hennequin, chairman and chief executive of McDonald's France. It follows a…10 Jan 1997 › Letter Collorafi → AixLetter sent by Bernard Collorafi, from Antibes, to Guy Dupuy, of McDonald's France (BP 309, Aix-en-Provence), regarding the turnover figures…17 Jan 1997 › Letter Collorafi → lawyerLetter sent by Bernard Collorafi to Maître Jean-Paul Clément, lawyer in Paris, reporting an incident which he considers should be added to the file of the dispute with…27 Jan 1997 › Registered letter Collorafi → McDonald'sRegistered letter with acknowledgement of receipt sent by Bernard Collorafi to Denis Hennequin, chairman and chief executive of McDonald's France, following…31 Jan 1997 › Registered letter McDonald'sRegistered letter with acknowledgement of receipt sent by Denis Hennequin, of McDonald's France, to Bernard Collorafi (SEBOL SA, Antibes), in reply to his…12 Feb 1997 › Registered letter McDonald'sRegistered letter with acknowledgement of receipt sent by Denis Hennequin, chairman and chief executive of McDonald's France, to Bernard Collorafi (SEBOL), in…27 Mar 1997 › Letter McDonald'sShort letter sent by Denis Hennequin, of McDonald's France, to Mr and Mrs Collorafi, dated Guyancourt, 25 April 1997.25 Apr 1997 › Letter lawyer → McDonald'sLetter sent by Maître Jean-Paul Clément, counsel for Mr Bernard Collorafi and SEBOL, to the management of McDonald's France (Mr Denis Hennequin), in reply to…5 May 1997 › Registered letter Collorafi → McDonald'sRegistered letter with acknowledgement of receipt sent by Bernard Collorafi to Denis Hennequin, chairman and chief executive of McDonald's France, against a background of…27 Jun 1997 › Registered letter McDonald'sRegistered letter with acknowledgement of receipt sent by the South-East regional management of McDonald's France, signed by Isabelle Kuster, to Bernard…22 Jul 1997 › Registered letter Collorafi → McDonald'sRegistered letter with acknowledgement of receipt sent by Bernard Collorafi to Isabelle Kuster, of McDonald's France, with a copy to Denis Hennequin. It replies…1 Aug 1997 › Letter Collorafi → AixLetter sent by Bernard Collorafi (GIE SODEVA, Antibes) to Isabelle Kuster, of McDonald's France (Acti Mart, rue Ampère, BP 309, Aix-en-Provence)…1 Sep 1997 › Registered letter McDonald'sRegistered letter with acknowledgement of receipt sent by McDonald's France, signed by Isabelle Kuster, Regional Director, to Bernard Collorafi…22 Sep 1997 › Registered letter Collorafi → AixRegistered letter with acknowledgement of receipt sent by Bernard Collorafi (GIE SODEVA, Antibes) to Isabelle Kuster, McDonald's France, in Aix-en-Provence…23 Sep 1997 › Registered letter Collorafi → McDonald'sRegistered letter with acknowledgement of receipt sent by Bernard Collorafi to Denis Hennequin (McDonald's France), regarding the allocation of a new…3 Oct 1997 › Registered letter Collorafi → McDonald'sLetter from Bernard Collorafi (GIE SODEVA, Antibes) to Isabelle Kuster, of McDonald's France in Aix-en-Provence, in reply to a letter of 22…9 Oct 1997 › Registered letter McDonald'sRegistered letter with acknowledgement of receipt sent by Denis Hennequin, chairman and chief executive of McDonald's France, to Bernard Collorafi, dated 20…20 Oct 1997 › UntruthsArgumentative note entitled “Untruths”, which sets reasons given in the judgment of the Paris Court of Appeal of 8 March 2000 against the situation observed…2 Feb 2002 › Untruths (2)Short argumentative note, added to the case file, which sets several statements attributed to McDonald's side by side to highlight their contradictions.3 Feb 2002 › Untruths (3)Third “Untruths” note: it sets McDonald’s statements on assistance to franchisees against the financial recovery of the three restaurants after Mr Collorafi’s removal.4 Feb 2002 › Untruths (4)Fourth “Untruths” note: it compares the criticism of the rents made in the judgment of 8 March 2000 with the occupation indemnity, 50% higher than the rents, awarded to McDonald’s.5 Feb 2002 › Untruths (5)Fifth “Untruths” note: against McDonald’s statement that it “takes all the risks”, it sets the liquidation of Mr Collorafi’s three companies and liabilities of 8 million francs.6 Feb 2002 › Letter Collorafi → lawyersStandard letter sent by Bernard Collorafi to lawyers to forward them the judgment of the Paris Court of Appeal of 8 March 2000 and to offer himself at their disposal.20 Mar 2000 › Letter Collorafi → members of parliament (loi NRE)Letter to members of parliament, on the eve of the examination of the bill on new economic regulations: Mr Collorafi encloses the judgment of 8 March 2000 as an illustration.21 Mar 2000 › Letter Collorafi → members of the European ParliamentLetter addressed “to all Members of the European Parliament”: Mr Collorafi sends them the judgment of 8 March 2000 as an illustration of abuses of dominant position and of economic dependence.22 Mar 2000 › Letter Collorafi → mayors of FranceLetter addressed “to all the Mayors of France” (34,000 mayors, via the AMF): the same approach of circulating the judgment of 8 March 2000 and denouncing the abuses.23 Mar 2000 ›

Cassation & ECHR

11 documents

Appeal to the Court of Cassation, applications, deliberations and statements of claims.

Cassation — McDonald's applicationApplication filed for SA McDonald's France, by SCP Delaporte-Briard, lawyer at the Conseil d'État and the Court of Cassation, against Bernard Collorafi and…10 Jan 2001 › Cassation — defence to applicationDefence observations filed by SCP A. Bouzidi, lawyer at the Conseil d'État and the Court of Cassation, for Bernard Collorafi and the companies SEBOL, B…7 Mar 2001 › Cassation — supplementary deliberationSupplementary note during deliberation filed for McDonald's France by SCP Delaporte-Briard, lawyer at the Conseil d'État and the Court of Cassation, after…19 Mar 2001 › ECHR — applicationLetter from the registry of the European Court of Human Rights (third section, Strasbourg) acknowledging receipt of the application lodged by Bernard…20 Mar 2001 › Cassation — orderOrder made by Jean-Pierre Bouscharain, judge delegated by the First President of the Court of Cassation, on appeal no. X 0014487 between the…4 Apr 2001 › Cassation brief — CollorafiSupplementary brief filed before the Court of Cassation by SCP Bouzidi for Mr Bernard Collorafi and the companies Les Pins, SEBOL and B & O, against McDonald's…1 Oct 2001 › Cassation brief — McDonald'sDefence brief filed for McDonald's France before the civil chambers of the Court of Cassation, in response to appeal no. X 00-14 487 lodged by Bernard…1 Oct 2001 › Statement of claims — SARL B & OSummary statement of claims of SARL B et O, drawn up as at 29 January 2002 by Maître Gilles Gauthier as part of the insolvency proceedings (file…1 Feb 2002 › Statement of claims — SARL Les PinsSummary statement of claims drawn up under article 621-103 of the Commercial Code, in the insolvency proceedings of SARL Les Pins (Juan-les-Pins), prepared…1 Feb 2002 › Statement of claims — SA SEBOLSummary statement of claims of SA SEBOL (Chemin de Saint-Claude, Antibes), drawn up as part of insolvency proceedings, stated as falling under…1 Feb 2002 › Judgment of the Court of CassationJudgment of the Court of Cassation, commercial, financial and economic chamber, ruling on appeal no. X 00-14.487 lodged by Bernard Collorafi and the…6 May 2002 ›

Press

9 documents

Press coverage of the case.

H&R reviewTrade press article published in the Revue technique des hôtels et restaurants of January 1995, presenting the summary of a survey by Gira Sic…1 Jan 1995 › Le Figaro Économie — openings drive hiringLe Figaro Économie: McDonald's multiplies openings in France — more than sixty in 1995 — and is hiring accordingly.4 Sep 1995 › La Tribune — net earnings per share: +17%La Tribune: in the 3rd quarter of 1995, McDonald's net earnings per share rise by 17%, driven by its international business.26 Oct 1995 › Investir — fierce competition in the United StatesInvestir: facing fierce competition in the United States, McDonald's trims its margins and slows its pace of openings.1 Nov 1995 › Les Échos — McDonald's still a hit on the stock marketLes Échos: “the defensive stock par excellence”, McDonald's shares soar on the stock market against a background of global expansion.3 Nov 1995 › Franchise MagazinePress article by Philippe Malterre, published in Franchise Magazine (March 1996), on the development of McDonald's in France and its model of…1 Mar 1996 › PME & AffairesPress article published in the magazine PME Affaires (November-December 1996 issue), in the section “Les rendez-vous de la franchise”, on the relationship…1 Dec 1996 › La Franchise no. 6Specialist press article reproducing a “dictionary of franchising”, an extract from Yves Marot's book “Le Langage de la Franchise”. It is…14 Mar 2000 › L'Officiel de la Franchise no. 6Extracts from a franchising glossary published by the magazine L'Officiel de la Franchise, reproducing definitions taken from Yves Marot's book “Le Langage…14 Mar 2000 ›

News

McDonald's, franchising, the lawsuits

Background articles to put this case file in context: franchise law, the group's major court cases around the world, the case law.

All news ›
Judgment of 8 March 2000 — Paris Court of Appeal
Download the PDF › Open the full summary sheet ›