Collo vs McDo

Correspondence · 16 Dec 1996

Registered letter Collorafi → McDonald's

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 Collorafi to McDonald's — 16 December 1996

Overview: letter from Bernard Collorafi to Denis Hennequin, chairman and chief executive of McDonald's France, concerning the forthcoming opening of the Antibes Ouest restaurant, for which he seeks the lease-management (location-gérance).

Key points

Mr Collorafi states that he met Isabelle Kuster and presented an application file to her, a copy of which he provides to the addressee. He explains that the restaurant openings on the outskirts of Antibes have caused the turnover of his shopping centre restaurant to fall by nearly 30%, the impact of the drive-through being estimated at 35%. This restaurant, which according to him achieved a turnover of 7.5 MF and generated 2.5 MF in cash flow, has seen its results affected, and the forecasts drawn up in 1987 are thereby distorted. He argues that he has a team in place and needs other restaurants to offset the impact on turnover and absorb fixed costs, and requests a meeting.

Significance

A document predating the litigation: it documents the franchisee's request to obtain Antibes Ouest and points out, as early as 1996, the effect of the new establishments on his results.

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Full transcription

Text obtained by optical character recognition (OCR) of the original scan, layout preserved. Automatic recognition — errors remain, especially on degraded faxes. The scan above is authoritative.

Bernard COLLORAFI 21 B Chemin de l'Estelle 06110 LE CANNET Le Cannet 16 December 1996 Denis HENNEQUIN Chairman and Chief Executive Officer McDonald's France SA 1 Rue Gustave Eiffel 78045 GUYANCOURT CEDEX Dear Denis, I met Isabelle KUSTER regarding the forthcoming opening of the ANTIBES OUEST Restaurant for which McDonald's has obtained the building permit. I told her of my motivation and of my ability to take on this Restaurant under a lease-management agreement (*location-gérance*). I am handing you a copy of the file that I presented to her. The openings of Restaurants on the outskirts of Antibes caused the turnover of the Restaurant located in the shopping centre to fall by nearly 30% and the impact of the drive is estimated at 35%. e Shopping centre Restaurant which then achieved a turnover of 7.5 MF and generated 2.5 MF of cash flow now finds itself with a projection of 13 MF for 1997 The turnover forecasts that had been drawn up in 1987 are today completely distorted by the impacts. Duvaure d dier semestre 199 de MOUGINS, VALL AU R99 LA TES OU S (foreseeable impact: 20%). Already after three months of opening, the drive is recording losses of 900,000.00 francs. You were able to see for yourself the difficulties of maintenance and supervision of the Restaurant. Today, I have a team ready to ensure development in my town and I need other restaurants to offset the turnover impacts and absorb the fixed costs. In this way I will have the means to ensure the QSP expected of my units and to increase sales I would very much like to talk with you very soon to explain my motivations. Thank you for the interest you take in my file and I await your fixing a meeting with me. Please accept, Dear Denis, my best regards.

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Other documents — Correspondence

Letter Collorafi → D. Raix16 Dec 1996Registered letter Collorafi10 Jan 1997Letter Collorafi → Aix17 Jan 1997Letter Collorafi → counsel27 Jan 1997Registered letter Collorafi → McDonald's31 Jan 1997Registered letter McDonald's12 Feb 1997

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