Collo vs McDo

People

Raymond Dayan

The licensee who opened the first McDonald's in France in 1972. In 1982, a US court took away his right to use the name.

In brief

  • Obtained a licence for France in 1971-1972; opened in Créteil in 1972.
  • His licence provided for a fee of 1% of turnover — well below the rates applied later.
  • 1982: the Circuit Court of Cook County (Illinois) terminated the licence for failure to meet the QSC standards (quality, service, cleanliness).
  • His restaurants, deprived of the name, were renamed O'Kitch and then passed under other banners.

The Dayan case is the first major dispute between McDonald's and a French operator, and it already raises the question that will run through all the others: what happens when the network head considers that the operator is not meeting its standards?

The Illinois court held in 1982 that the restaurants operated by Dayan did not meet the agreement's requirements of quality, service and cleanliness, and authorised McDonald's to terminate. Dayan's defence rested on good faith: he argued that the franchisor had not provided him with the promised assistance and had thus set him up to fail. The court rejected this argument.

The structure of the reasoning — the franchisor has the right to terminate, but the fairness of the manner can be debated — is exactly the one that would be at the heart of the Antibes case fifteen years later, this time before a French judge.

Sources

External sources.

  1. Dayan v. McDonald's Corp., 125 Ill. App. 3d 972 (1984) — Justia / Illinois Appellate Court

Where this comes up in the case file

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