Norman E. Krehl v. Baskin-Robbins Ice Cream Company
Opinion
Opinion
Ely, J.
In this class action antitrust suit against Baskin-Robbins Ice Cream Company [BRI-CO] and its area franchisors, certain franchisees appeal from an order of involuntary dismissal entered against them by the District Court. Because franchisees stipulated that Baskin-Robbins would be entitled to judgment absent proof of a per se violation of the antitrust laws, we have no occasion to consider the lawfulness of the challenged business practices under the so-called “rule of reason.” We affirm.
I. FACTUAL BACKGROUND
BRICO, the nation’s largest chain of ice cream specialty stores, operates the quintessential franchise system. See generally ABA Antitrust Section, Monograph 2, Vertical Restrictions Limiting Intrabrand Competition, 1-6 (1977). Originally a small Southern California ice cream manufacturer, BRICO initially engaged in the direct franchising of retail outlets in California. In 1959, BRICO began a program of expansion through licensing independent manufacturers to produce Baskin-Robbins ice cream and establish Baskin-Robbins franchised stores. This mode of expansion was chosen because shortages of capital and personnel rendered any other method impracticable.