ETHICS McNeely told Hardee’s officials that he was interested in purchasing multiple restaurants in Arkansas. A Hardee’s officer assured him that any of the company-owned stores in Arkansas would be available for purchase.

However, the company urged him to open a new store in Maumelle and sent him a letter estimating first-year sales at around $800,000.

McNeely built the Maumelle restaurant, but gross sales the first year were only $508,000.

When McNeely asked to buy an existing restaurant, a Hardee’s officer refused, informing him that Hardee’s rarely sold company-owned restaurants. The franchise offering circular contained no misstatements, but McNeely brought suit alleging fraud in the sale of the Maumelle franchise. Does McNeely have a valid claim against Hardee’s? Apart from the legal issues, did Hardee’s officers behave ethically? Would they want their behavior to be publicized?

Would they like to be treated this way themselves?

Is all fair in love, war, and franchising?