Collo vs McDo

Correspondence · 16 Dec 1996

Letter Collorafi → McDonald’s (Aix)

Correspondence exchanged between the parties (or their counsel) in the course of the dispute.

Type
Correspondence
Date
16 Dec 1996
Parties
From Bernard Collorafi

Summary

Summary sheet

Letter from Bernard Collorafi to McDonald's regional management — 16 December 1996

Overview: letter from Bernard Collorafi addressed to Isabelle Kuster, regional management of McDonald's France in Aix-en-Provence, following a meeting on 13 December.

Key points

Collorafi confirms his application for the future Antibes Ouest restaurant, due to open a few months later. He stresses the impact of this opening on his existing establishments, the shopping centre restaurant and the drive-through on the route de Grasse, as Antibes Ouest is located in the town from which most of his customers come, a clientele built up over ten years, and close to a planned expressway. He gives forecast turnover figures for 1997 of 13 MF for the shopping centre and 16 MF for the drive-through, recalls that the forecast announced in 1987 was 19 MF, and reports a 35% decline at the shopping centre restaurant linked to the neighbouring openings. He announces that he is sending a file to Denis Hennequin and asking to meet him to discuss expansion in Antibes.

Significance

This correspondence illustrates, before the litigation, the franchisee's warnings about the effects of new establishments in his catchment area.

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Bernard COLLORAFI 21 B Chemin de l'Estelle 06110 LE CANNET Antibes, 16 December 1996 Isabelle KUSTER Regional Management McDonald's France BP 309 13798 AIX EN PROVENCE CEDEX 03 Dear Isabelle, Thank you for the excellent welcome you gave me on Friday 13 December in AIX EN PROVENCE. I confirm my application for the ANTIBES OUEST Restaurant, which is due to open in a few months. I take the liberty of insisting on the impact it will have both on the Shopping Centre Restaurant and on the Drive on route de Grasse. Indeed, the ANTIBES OUEST Restaurant is located in the town of Antibes, from which comes the majority of our customers whom we have been serving for 10 years. Moreover, it is located on the expressway which is due to open shortly and will be less than 5 minutes away. The forecast turnover for 1997 is 13 MF for the shopping centre and 16 MF for the drive. The Shopping Centre Restaurant has been impacted for two years by the openings of Restaurants in the surrounding towns CAGNES PLAGE, CANNES, GRASSE, and above all by the opening of the drive located 300 metres away: - 35 %. As a reminder, the forecast turnover announced at the financial presentation in 1987 was 19 MF. Furthermore, given the openings at VALLAURIS and MOUGINS, the drive will certainly not reach the expected turnover of 20 MF. As I told you, I am sending a file to Denis HENNEQUIN and asking to meet him to discuss with him face to face the expansion in ANTIBES. Yours sincerely, Dear Isabelle, Bernard

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