Protected against abusive practices of franchisees

Assignment Help Business Management

Reference no: EM1310041

Q. Step 1: Read about a case.

Southland Corporation (Southland) owned the "7-Eleven" trademark also licensed franchises throughout the country to operate 7-Eleven stores. The franchise agreement provided for fees to be paid to Southland by every branch based on a percentage of gross profits. In return, franchisees receive a of premises lease a license to use the 7-Eleven trademark also trade secrets, advertising merchandise, also bookkeeping assistance. Valerie Campbell purchased an existing 7-Eleven store in Fontana, California, also became a Southland franchisee. The franchise was designated #13974 by Southland. As part of the purchase, Campbell applied to the state of California for transfer of the beer also wine license from earlier proprietor. Southland also executed the application. California approved the transfer also issued the licenses to "Campbell Valerie Southland #13974."

On September 9, 1978, an employee of Campbell's store sold beer to Jesse Lewis Cope, a minor who was allegedly smashed at time. Later than drinking beer, Cope drove his vehicle also struck a different vehicle. 2 occupants of the other vehicle, Denise Wickham also Tyrone Crosby, were severely injured, also a third occupant, Cedrick Johnson, was killed. Johnson (through his parents), Wickham, also Crosby sued Southland -but not Campbell-to recover damages.

Step 2: Post your response to the following to the discussion board:

Post your response to the following on the board of discussion. If suitable comprise personal experience in your response.
-Is Southlalso legally liable for the tortious acts of its franchisee?
-Is it morally responsible?
-Illustrate are some ways to be protected against abusive practices of franchisees?

Reference no: EM1310041

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