Case summary :The person C signed a franchise agreement with company L, a fast food chain. The agreement binds C to follow the rules given in L’s operating manual. In case of non- compliance with L’s operating manual the contract will stand terminated. After nine months, fire broke out in the restaurant of C, due to which the kitchen was severely damaged. There was no mistake on the part of C but L notified that the franchise would terminate within 30 days due to non-compliance of safety procedures.
To find: The factor to be considered by the Court in deciding the wrongful termination of franchise by L.
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