In 1979, Walid Elkhatib, a Palestinian Arab of the Muslim faith who is a U.S. citizen, purchased his first Dunkin' Donuts franchise, and has continuously operated various Dunkin' Donuts franchises since that time. Elkhatib attested that he chose to pursue the franchise opportunity with Dunkin' Donuts in part because it would not require him to handle pork products, which he asserts is forbidden to members of the Arab race by tradition and custom. Although no pork products were served at Dunkin' Donuts when Elkhatib purchased his first franchise in 1979, that situation changed in 1984 when Dunkin' Donuts introduced its breakfast sandwiches, which are croissants with egg and a choice of cheese, bacon, ham, or sausage. Elkhatib refused to sell the sandwiches at his store. Between 1984 and 2002, Elkhatib opened additional Dunkin' Donuts franchise stores and began discussions with Dunkin' Donuts regarding the relocation of one of his stores. During this time, Elkhatib continued to refuse to sell pork products in his stores, though he would sell the breakfast sandwiches without meat. In August 2002, Elkhatib received a letter from Dunkin' Donuts informing him that while he could continue to refuse to sell pork products in his current stores at their current locations, he would no longer be allowed to open any new stores, relocate any of his existing stores, or renew any of his existing franchises because he refused to carry Dunkin' Donuts' full breakfast sandwich product line.

1. Can Dunkin' Donuts legitimately refuse to renew Elkhatib's franchise agreements?