Husain

Husain v. Mcdonald's Corp.

Good Law
140 Cal. Rptr. 3d 370·2012 Cal. App. LEXIS 515·205 Cal. App. 4th 860·2012 WL 1484106
Court of Appeal of CaliforniaApril 30, 2012Nos. A131235, A131689California4,469 words

Opinion

Lead Opinion

Margulies, J.

McDonald’s Corporation (McDonald’s) and related parties appeal from orders granting a preliminary injunction to Syed Ali Husain and Khursheed Husain (the Husains) permitting the Husains to continue operating three McDonald’s restaurants in Marin County pending completion of a trial in this action. We affirm the orders.

I. FACTUAL AND PROCEDURAL BACKGROUND

A. Factual Background

Husain and his wife have owned McDonald’s franchises since the early 1980’s. By 2005, they held five McDonald’s franchises in San Francisco and Daly City. In June 2005, the Husains entered into an agreement with third parties (the Magruders) to purchase an additional seven McDonald’s restaurants in Marin County. The Magruders’ franchise agreements with McDonald’s required they obtain McDonald’s consent to the transfer of ownership. In two separate assignment agreements between the Husains, the Magruders, and McDonald’s, McDonald’s consented to the Magruders’ assignment of their franchise agreements to the Husains. 1 The dispute in this case centers on whether McDonald’s made an enforceable promise to the Husains to extend or “rewrite” the franchise terms for three of the restaurants—Novato,…

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