Knott

Roger and Carol Knott, along with Bascom Management, Inc. (a corporation owned and controlled by the Knotts), appeal the district court’s summary judgment in favor of McDonald’s Corporation in the Knotts’ diversity action for breach of contract, breach of the implied covenant of good faith and fair dealing, and tortious interference with contractual relations.

The district court had jurisdiction under 28 U.S.C. § 1332 , and we have jurisdiction under 28 U.S.C. §§• 1291 & 1332. We affirm.

I

The Knotts operated two McDonald’s restaurants in the San Jose area — the Bascom Avenue and Camden Way McDonald’s — pursuant to franchise agreements with McDonald’s. Around August 1995, the Knotts decided to sell their franchises. Jason and Julie Cartie, who owned and operated a McDonald’s franchise in upstate New York, expressed an interest in buying the franchises. The Knotts and Carties entered into an agreement that provided that the Carties would purchase the franchises for $3.5 million but also granted the Carties an absolute right to withdraw from the contract. After the Carties flew to San Jose to meet with the Knotts, tour the McDonald’s restaurants, and meet with McDonald’s…