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Business Organizations Keyed to Chasalow, 3rd Ed.
Butler v. McDonald’s Corp.
Citation:
110 F. Supp. 2d 62 (2000)Facts
McDonald’s Corporation had leased a restaurant building and premises in North Kingstown, Rhode Island to James Cooper for eleven years and had a license franchise agreement allowing Cooper to operate the business under the McDonald’s name. On July 25, 1997, Bryan Butler, a minor, was a patron at this franchised restaurant with other young teens. Butler exited the restaurant through a south side door to inform someone in the parking lot that the group needed more time. Upon realizing he was mistaken about the car’s identity, Butler turned to re-enter the restaurant. When he pushed against the glass door, it shattered, causing injury to his right hand that required two corrective surgeries and physical therapy. The plaintiff alleged that a “spider crack” had existed in the glass door for over two weeks and that the franchisee knew or should have known of this unsafe condition. The plaintiff sought to hold McDonald’s Corporation liable based on the nature of the relationship between McDonald’s and the franchised restaurant, arguing that McDonald’s maintained control over the franchisee through operational and training manuals, franchise agreements, inspections, and the right to terminate the agreement for material breach.
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