Collo vs McDo

Correspondence · 3 Oct 1997

Registered letter Collorafi → McDonald's

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

Type
Correspondence
Date
3 Oct 1997
Parties
From Bernard Collorafi

Summary

Summary sheet

Letter from Bernard Collorafi to McDonald's France — 3 October 1997

Overview: registered letter with acknowledgement of receipt sent by Bernard Collorafi to Denis Hennequin (McDonald's France), concerning the allocation of a new restaurant in Villeneuve-Loubet.

Key points

Mr Collorafi recalls that he operates three restaurants under lease-management (location-gérance) in the catchment area extending from Vallauris to Cagnes-sur-Mer, and that their turnover is far below the forecasts drawn up before opening, leading to losses and a cash shortfall. He states that McDonald's has just obtained planning permission in Villeneuve-Loubet, in this same area, and that he learned “with great dismay” that this restaurant would be allocated to another franchisee. He considers that his units will suffer an impact and a fall in turnover. He complains of further discrimination, recalls that on three occasions the managers allegedly asked him to leave the system and, faced with his refusal, are said to be using economic pressure. He announces that he is passing the information on to his lawyer.

Significance

A document marking the breakdown: Mr Collorafi formalises his grievances about his exclusion from expansion and the competitive impact of the new establishments, and records the move to litigation.

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Bernard COLLORAFI GIE SODEVA 2721 Chemin de Saint Claude 06600 ANTIBES Antibes, 3 October 1997 Registered letter with acknowledgement of receipt McDonald's France Sa Denis HENNEQUIN 1 Rue Gustave Eiffel 78045 GUYANCOURT CEDEX Dear Denis, In the catchment area which extends from VALLAURIS to CAGNES SUR MER, there are today 3 restaurants that I operate under lease-management agreements (*location-gérance*). Already these 3 restaurants in this area do not achieve, by a long way, the forecast turnover that was drawn up before their openings. The current turnover levels are so low that they cause significant losses and an obvious lack of cash. McDonald's has just obtained a building permit in the municipality of VILLENEUVE LOUBET, which is in this catchment area. I have just learned, with great dismay, that you have decided to allocate this restaurant to another Franchisee. My current restaurants will inevitably be impacted by this new location and will suffer a fall in turnover, or, at the very least, an obstacle to their development J topter ue déple cette situation et petite ele ouver oi perseveran time, you exclude me from expansion. Allocating this new point of sale to me would have made it possible to reduce overheads, to hope for a reduction in losses and perhaps to glimpse a certain profitability for my restaurants My units are deprived of the sufficient profitability which allows any business to develop properly and to motivate its staff. On three occasions the Managers of McDonald's France asked me to leave the System, and, faced with my refusal, you are now using economic pressure. To quote you, it would have been preferable to build bridges for me rather than to erect walls. I take note of this new discrimination and am passing the additional elements of this file to my Lawyer. Please accept, Dear Denis, my sincere regards.

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Other documents — Correspondence

Registered letter Collorafi → McDonald's16 Dec 1996Letter Collorafi → D. Raix16 Dec 1996Registered letter Collorafi10 Jan 1997Letter Collorafi → Aix17 Jan 1997Letter Collorafi → counsel27 Jan 1997Registered letter Collorafi → McDonald's31 Jan 1997

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