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Assignment The Founder - 7 March 2019

This document provides guidelines for a group assignment on the film "The Founder" involving McDonald's. It outlines that students should: 1) Watch the film and read a synopsis to understand the plot. 2) Answer multiple choice and short answer questions about key details and legal aspects of the McDonald's franchise depicted in the film. 3) Questions relate to Ray Kroc convincing the McDonald brothers to sign a franchise contract, early challenges with franchisees, and how Kroc ended his contract with the brothers to form McDonald's Corporation. 4) The assignment is worth 10% of the course grade and all questions must be completed and submitted by a specified deadline.

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Najatul Nadhirah Najla
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690 views

Assignment The Founder - 7 March 2019

This document provides guidelines for a group assignment on the film "The Founder" involving McDonald's. It outlines that students should: 1) Watch the film and read a synopsis to understand the plot. 2) Answer multiple choice and short answer questions about key details and legal aspects of the McDonald's franchise depicted in the film. 3) Questions relate to Ray Kroc convincing the McDonald brothers to sign a franchise contract, early challenges with franchisees, and how Kroc ended his contract with the brothers to form McDonald's Corporation. 4) The assignment is worth 10% of the course grade and all questions must be completed and submitted by a specified deadline.

Uploaded by

Najatul Nadhirah Najla
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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BT20403 COMMERCIAL LAW

SEMESTER 2, 2018/19
GROUP ASSIGNMENT #1 (10%)

THE FOUNDER
Assignment #2 : The Founder (FilmNation Entertainment, The Combine, Faliro House Productions
S.A. 2016)

Guidelines:
a) Watch the movie.
b) Read the synopsis of the movie before you watch the movie so that you have a general
understanding of what is going on in the movie.
c) This assignment carries 10% of your carry mark for coursework. Please complete all the
questions.
d) Each question carries certain marks as indicated in a bracket at the end of the question.
e) Submit in person to me or tutor latest by 12 noon 29 March 2019

A. Signing the franchise contract (3 marks)


1. Who made the offer to McDonald’s brothers (Mac and Dick) for turning their business
into franchise? (1 mark)

Ray Kroc. After McDonald’s brothers told him about the journey of their business, he met with
the brothers in the next morning and tell them that their whole operation and the tasted of their
product are meant to be a franchise.
_____________________________________________________________________________

2. Initially, Mac and Dick were not keen in entering franchise contract with Ray Kroc.
Because they have previously encountered absentee franchisees who were lackadaisical
in upholding their system. However, Ray was very persistent and eventually managed to
convince them. The brothers agreed to do on certain term. What is the term? (2 marks)

On the minute of 37:00, Ray Kroc and McDonald’s brothers are signed the contract that consist
of the term. The term given by the brothers are Ray receives 1.9% of net profits generated by
franchisees and 0.5% from the said profits are paid to the brothers. They stated on the contract
any changes to the speedy system or any parts of the business must be formally submitted in
writing for approval by the brothers.

B. Pioneers in McDonald’s franchise business (3 marks)


1. During the initial stage of the McDonald’s franchise business initiated by Ray, he was caught by
surprise during his visits to the outlets. He noted that the franchisee (movie at 49:37 to 50:40)
had deviated from McDonald’s business terms. Explain any two terms had not been complied
by the franchisee. (3 marks)

_________________________________________________________________________________

_________________________________________________________________________________

C. The McDonald’s Corporation (4 marks)


1. Ray renames his company to The McDonald's Corporation and demands to be released from
his contract and buy the brothers out. How did Ray manage to end the contract with the
brothers? (2 marks)

_________________________________________________________________________________

2. The brothers had proposed a a 1% annual royalty in perpetuity, but when the time comes to
finalize the agreement, Ray refuses to include the royalty in the settlement and instead offers it
as a handshake deal. Does a handshake deal amount to a binding agreement? (2 marks)
_________________________________________________________________________________

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