Collo vs McDo

Correspondence · 5 May 1997

Letter lawyer → McDonald's

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

Type
Correspondence
Date
5 May 1997
Parties
From Bernard Collorafi's counsel (Maître Clément)

Summary

Summary sheet

Letter from counsel to McDonald's — Maître Clément · 5 May 1997

Overview: letter 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 a letter from the company and following up his own letter of 12 March 1997.

Key points

Counsel expresses surprise at a lack of courtesy and recalls that contracts must be performed according to their spirit and not only their letter. On the “alleged discrimination”, he criticises McDonald's for not responding to his client's arguments: the establishment of a restaurant in Vallauris would cut into the primary and secondary catchment areas of Mr Collorafi's two restaurants. He argues that McDonald's alone decides on locations, compels certain franchisees to open new restaurants so as not to see their market share reduced, then allocates to the neighbour sites that harm the first. He invokes the forecast operating accounts provided to franchisees and the statements made at motivational meetings. Mr Collorafi maintains his position and reserves all rights regarding the damage caused.

Significance

Pre-litigation correspondence: it formalises, before the legal action, the franchisees' grievances concerning the openings in close succession and the encroachment on their catchment area.

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DE A P.Ø1 REF. Monsieur Denis HENNEQUI résident Directeur Généra 2005 OO COUR CEDEN Paris, 5 May 1997 Sté SEBOL - Monsieu: Bernard COLLORAFI DONALD'S Sir, the copy of the letter that you sent to my client, Mr BernaId COLLORAFI reply to my letter of 12 March 1997. Allow me first of all to be astonished at this lack of courtesy which is all the more surprising as you extol your relations with their clientele. franchisees, DE A 0493957870 P.02 paríditemen: that the contracts must be and that it is not enough for you to take refuge behind the letter of the contract, ignoring its spirit. as regards your paragraph on the "didiscrimination alléguée", you absolutely do not answer Mr COLLORAFI's argument. Your national average of two restaurants operated manager matters little, if in the concrete and precise case before us you deduct from the restaurant of VALLAURIS the primary and secondary catchment area of the two restaurants of my client. Concerning the opening of your restaurants, It goes without saying that I never intended to interfere in the general policy of the company Mo Donald's France and I can only wish for you as for my client that you continue to pursue the development of your network in France and in other countries. what I note is the application that you make of it in the to my client. area concerned and which causes harm that he to continue to argue, the balance sheet and the profit and loss account for 1997 will settle the matter. PROFITABILITY OF THE RESTAURANTS denied for a moment that you do not promise PrOMeSSES forecast operating accounts which allow franchisees to know the level of investment, that is to say to invest their own funds and to ask a bank for the balance. It is on the basis of these documents that the franchisee and the banker make up their minds. Moreover, I can only stress the hypocrisy which consists in saying that you never force anyone to operate your sites. In reality you decide on the locations, you offer, if you see fit, to this or that franchisee to open, obliging some to open a new restaurant so as not to see their market share cut by another (which was the case for the 2nd restaurant of Mr COLLORAFI), you allocate it to the neighbouring franchisee, as you have just done at VALLAURIS, and by doing so you deprive restaurar: of the other of part of the turnover, that is to say you harm DE A 0493957870P.03 Finally, one need only refer to your innumerable promises and speeches at the motivation meetings of the franchisees where you kept repeating: "- increase in market shares - increase in turnover - increase in profits" Consequently, Mr Bernard COLLORAFI maintains his position claims catchment area, making every reservation as to the harm which caused by your decision the spirit of partnership which, according to yourself, must reign in the McDonald's network. I confirm that I remain at your disposal to discuss it with you counsel whose details I ask you once again to give me. Yours faithfully, Jean-Pavi CLEMENT TOTAL PAGE (S)

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