Mealey's Franchise - Federal Judge: McDonald's Has Right To 1st Option To Buy Back Franchises

SAN DIEGO - Pursuant to its franchise agreements, McDonald's USA LLC had the first option to purchase eight California franchises for the price set out in a purchase and sale agreement (PSA), even though the franchisor declined to purchase other assets included in the PSA, a federal judge in California ruled Aug. 16, finding the other assets "outside the scope of the franchise agreements" (Tavarua Restaurants, Inc., et al. v. McDonald's USA, LLC, No. 19-21, S.D. Calif., 2019 U.S. Dist. LEXIS 139257).
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