Collo vs McDo

Correspondence · 22 Sep 1997

Registered letter McDonald's

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

Type
Correspondence
Date
22 Sep 1997
Parties
From McDonald's France

Summary

Summary sheet

Registered letter from McDonald's France — 22 September 1997

Overview: registered letter with acknowledgement of receipt sent by McDonald's France, signed by Isabelle Kuster, Regional Director, to Bernard Collorafi, chairman of SA SEBOL and manager of SARL B et O.

Key points

McDonald's acknowledges receipt of Collorafi's letters of 1 August and 1 September 1997. It recalls having sent five ordinary reminders to SEBOL and five to B et O in respect of unpaid sums, which in its view remained unexplained, and says it does not understand the failure to pay the invoices. The letter announces the organisation of a review of the restaurants operated under lease-management (location-gérance) by the companies managed by Collorafi, such reviews traditionally taking place six months to a year after the opening of an establishment, Antibes Ouest having opened on 29 April 1997. It asks for a set of accounting documents to be prepared for the three companies (accounting position, P&L, balance sheets, amortisation schedules, bank reconciliations, forecasts).

Significance

A postscript recalls that the 5% service fee remunerates the use of the brand and the know-how and is passed on to McDonald's Corporation. The document sheds light on the rising financial tensions between the franchisor and the franchisee in the months preceding the breakdown.

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McDonald's France 1. rue Gustive Pille 78045 Guyancour Cedex Telepoere: 01 20 18 60 00 Telecopie 01 30 10 63 00 McDonald's Société SEBOL SA et Société SARL B et O 2721, Chemin de Sain Claude 06600 ANTIBES Registered letter AR. For the attention of Bernard COLLORAFI, Chairman of SA SEBOL and Manager of SARL B et O. Arx. lo 2209.1997 Bertard, We acknowledge receipt of your letters of 01.08.97 and 01.09.97. We remind you for all practical purposes that we have sent to date to the two companies above: - 5 ordinary reminders to the attention of the company SEBOL SA stating the sums unpaid. - 5 ordinary reminders to the attention of the company B et O SARL stating the sums unpaid ¡Copies of which are enclosed). Tous n'avons reçu de ta part, pour ces relances, aucune explication concernant le non paiement des sommes concerned. Contrary to what you state in your letter of 01.08 97 we do not understand why you do not settle these invoices with us. a nsi ca quorsa, nous suitaines eter, le plus rapidemen postile Fa chiser inaen de de de restaurants operated under lease-management agreements (*location-gérance*) by the companies of which you are the manager. Indeed, as you know, these reviews are traditionally scheduled 6 months to a year after the opening of a new restaurant. Consequently, Antibes Quest having opened on 29.04.1997, we shall now have sufficient hindsight to carry it out. Please therefore contact us as soon as possible to agree a date and to prepare, for each of the three companies concerned, all of the following documents, necessary for this review: - Accounting situation drawn up less than 3 months ago (Balance sheet, profit and loss account, general trial balance). - P&L reconciled with this accounting situation - P&L reconciled with the balance sheet at 31.12.1996 (if applicable). - Fixed assets register. - loan amortisation table - Bank reconciliations - Forecast P&L through the end of 1997 and for 1998. McDonald's France Services SARL an cpial de 37300400 - RUS Voriller B 401 705.358 acDonald's If you already have an accounting situation at 30.06.1997, we can base our review on these documents. Failing that, please have one drawn up at 31.07.97 or at 31.08.97 depending on which is quickest. Awaiting your call, we remain, Bernard, yours sincerely. iimm Isabelle KUSTER Regional Director PS: In case you have "forgotten" it, the 5% service fee directly remunerates the use of the trademark, trade names, sign and know-how transmitted by the licence annexed to the lease-management agreement (*location-gérance*) and is directly and entirely paid over to McDonald's Corporation, the American parent company of McDonald's France SA. Likewise, you seem to have quickly "forgotten" that since the opening of Antibes in 1987, we have not failed to share with you regularly our numerous remarks as well as our advice within the framework of the operational reviews, business balance sheets, social balance sheets, CSVRs etc. . which regularly punctuate the life of a restaurant VcDonald's France Services SARL an capital de 37.300.400 F - ROS Versailles B 101 308 758 .. r. ....

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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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