Franchises

Matt Mos, a former Navy Seal, bought a “Willy’s Donuts” franchise in Florida after retiring from the Navy. Willy’s Donuts
has over 500 franchisees, and its franchise agreement states that all franchisees must offer menu items as directed by
Willy’s Donuts, and that the failure to do so could result in the immediate termination of the franchise-
Matt is a vegan, and bought the franchise because the franchise agreement gave the owners of the franchises the
option of being “meat-free-” The franchise agreement provided in bold type that the franchisor, Willy’s Donuts, had the
right to modify the terms of the agreement regarding the types of foods that could be served upon 6-months notice to
the franchisees-
Matt’s franchise was very successful, and every year he received an award from Willy’s Donuts for being one of the top
10% of its franchisees- Five years later, Willy’s Donuts gave proper notice to this franchisees that they had to serve
breakfast sandwiches with bacon, ham, and sausage- Matt refused to sell these items at his store-
Matt opened a second franchise, at which he also refused to sell pork products- Matt’s franchises continued to be
successful- Two years later, when Matt proposed to relocate the new franchise, Willy’s Donuts refused to approve the
new location and informed him that it would not renew his franchise agreements because he did not carry the full
sandwich line-
Do you believe that Willy’s Donuts was justified in its decision to terminate the franchises?