Pat enters into an agreement with Quik Food, Inc., to operate a franchise in Region City. Later, Quik grants franchises to others within the city, Pat files a suit to close them. This suit will likely

Question

Quizplus · Accepted Answer

If Quik did not give Pat exclusive rights to operate a franchise in Region City, Pat cannot sue to close down other franchises. Pat would only have the right to sue if there was a breach of contract or if they were granted exclusive rights to the territory. However, excluding competitors would likely violate antitrust laws, so option A is also incorrect. Payment of a franchise fee or being the first franchisee would not automatically give Pat the right to sue to close other franchises. Therefore, option D and C are incorrect.

Pat Enters into an Agreement with Quik Food, Inc