Collo vs McDo

Legal concepts

QSC — quality, service, cleanliness

Three words that have become a contractual obligation. Since the 1970s, McDonald's has based the termination of its operators' contracts on failure to comply with them.

In brief

  • Quality, Service, Cleanliness — a formula attributed to Ray Kroc that became the network's internal motto (often cited as “QSC&V”, with Value).
  • It is not a slogan: the QSC standards are incorporated into the agreement, which makes them legally enforceable.
  • Failure to comply with them was the contractual basis for the termination upheld against Raymond Dayan in 1982.
  • They are measured through inspection visits and audits, whose reports become documents in the event of a dispute.

QSC is the clearest example of how an operational standard becomes a legal weapon. Formulated as a quality requirement, it is written into the agreement; the franchisor reserves the right to inspect, to grade, and to draw the consequences of an insufficient grade.

The difficulty for the operator is twofold. First, it is the franchisor that defines the standard, carries out the checks and judges the result. Second, a QSC failure can be invoked as a serious contractual breach — and therefore as the trigger for a termination clause.

The Antibes case file contains the visit reports and operational audits submitted in the proceedings, as well as the exchanges of letters commenting on them.

Sources

External sources.

  1. Dayan v. McDonald's Corp., 125 Ill. App. 3d 972 (1984) — on the QSC standards — Justia

Where this comes up in the case file

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