Collo vs McDo

Correspondence · 12 Feb 1997

Registered letter McDonald's

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

Type
Correspondence
Date
12 Feb 1997
Parties
From McDonald's France

Summary

Summary sheet

Letter from McDonald's France — Denis Hennequin · 12 February 1997

Overview: registered letter with acknowledgement of receipt sent by Denis Hennequin, of McDonald's France, to Bernard Collorafi (SEBOL SA, Antibes), in reply to his letters of 10 and 31 January 1997 and to a meeting on 8 January 1997.

Key points

Denis Hennequin confirms the allocation of the Vallauris site to Patrick Gilarski, presented as a regional decision based on expansion criteria. He recalls that McDonald's never grants territorial concessions to its franchisees and that its initial commitment covers only the operation of a single restaurant: when several “eligible” partners operate in the same region, territorial boundaries cannot be clearly defined. Responding to Mr Collorafi's concerns about profitability, he states that the difficulties of the restaurant market lead, in specific cases, to a review of fee levels, and announces that Isabelle will shortly offer him new financial terms adapted to the operation of Antibes-Nord. He concludes by wishing him a successful opening for his Antibes-Ouest restaurant.

Significance

A piece of correspondence documenting the refusal to allocate Vallauris to Mr Collorafi and the announcement of a revision of fees, two points at the heart of the subsequent dispute.

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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.

McDonalds SEBEOL SA 2721 Chemin de Saint Claude Immeuble Keria 06600 ANTIBES For the attention of Bernard COLLORAFI Guyancourt, 12 February 1997 Registered letter with A.R. SUBJECT: Our meeting of 08/01/97 My dear Bernard, I have duly received your letter of 10/01/97 recounting our meeting of 08/01/97 as well as your registered letter with acknowledgement of receipt of 31/01/97. I did not reply directly to the first letter because Isabelle wished, given the changes that have occurred in the Southern market, to discuss it directly with you, which I found more open and in the direction of better communication. Isabelle also confirmed to you the allocation of Vallauris to Patrick GILARSKI. The allocation of a site is a regional decision based on the expansion criteria that you know. When several of our "eligible" partners operate in the same region, it is not possible to define in a Cartesian manner where the territorial limits of each lie. Moreover we never give territorial concessions to our Franchisees and in all cases our initial commitment relates only to the operation of one restaurant. As regards your concerns about profitability, the difficulties of the restaurant market combined with the economic problems encountered in 96 and with our own development lead us, in very specific cases, to review the fee levels applicable to the restaurant. In this respect, Isabelle will shortly propose to you new financial conditions adapted to the current operating conditions of your Antibes Nord restaurant. Wishing you a good opening for your new Antibes Ouest restaurant, please accept, My dear Bernard, my most sincere regards. DA- Denis HENNEQUIN

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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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