Action Items
repare a case study that requires critical thinking. The case study should include
related questions and guiding answers.
Š.C., Inc., had a franchise agreement with McDonaldàCorporation to operate
McDonaldàrestaurants in Lancaster, Ohio. The agreement required J.C. to
make monthly payments to McDonaldàof certain percentages of the gross
sales. If any payment was more than 30 days late, McDonaldàhad the right
to terminate the franchise. The agreement also stated that even if
McDonaldàaccepted a late payment, that would not ïnstitute a waiver of
any subsequent breach.“ubmission Instructions
ƒomplete and submit this assignment per your professor’s instructions.
J.C., Inc., had a franchise agreement with McDonaldàCorporation to operate McDonaldÊrestaurants in Lancaster, Ohio. The agreement required J.C. to make monthly payments to
McDonaldàof certain percentages of the gross sales. If any payment was more than 30 days
late, McDonaldàhad the right to terminate the franchise. The agreement also stated that
even if McDonaldàaccepted a late payment, that would not ïnstitute a waiver of any
subsequent breach.
cDonaldàsometimes accepted J.C.àlate payments, but when J.C.
defaulted on the payments in July 2010, McDonaldàgave notice of 30 days to comply or
surrender possession of the restaurants. J.C. missed the deadline. McDonaldàdemanded that
J.C. vacate the restaurants, but J.C. refused. McDonaldàfiles a lawsuit alleging that J.C. had
violated the franchise agreement. J.C claimed that McDonaldàhad breached the implied
covenant of good faith and fair dealing. Which party should prevail and why?

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