Perez

MEMORANDUM AND ORDER

This action arises from a McDonald’s franchise agreement. Plaintiffs’ second amended complaint alleges causes of action for (1) declaratory judgment, (2) breach of express contract, (3) violation of the California Franchise Investment Law, (4) fraudulent misrepresentation, (5) negligent misrepresentation and (6) violation of the Illinois Consumer Fraud and Deceptive Business Practices Act. The gravamen of plaintiffs’ second amended complaint is that McDonald’s arbitrarily withheld its consent to the sale of plaintiffs’ restaurant and failed to disclose, or only partially disclosed in a misleading manner, the restrictions on the sale or transfer of their restaurant. McDonald’s moves for summary judgment. Fed.R.Civ.P. 56.

BACKGROUND

Plaintiffs Gerardo and LuAnn Perez purchased the Cameron Park, California McDonald’s franchise on April 4, 1988. In or about 1995, unsatisfied with the treatment they were receiving from McDonald’s, plaintiffs decided to sell their restaurant. Plaintiffs submitted four prospective purchasers to McDonald’s for its approval. In each case, McDonald’s refused to consent to the sale citing the prospective purchasers’ failure to…