1. Del Rey’s La Grande Enchilada restaurant is considered a chain-style business operation, because the franchise operates under the franchisors trade name and is identified as a member of a group of dealers that engage in the franchisors business.
2. If Carlos Del Rey operated as sole proprietorship he would be the only one that bears the loss for the damage of the kitchen after the fire, because he is the owner of the business. That means he alone bears the burden and he will have unlimited liability, or legal responsibility if anything were to happen to the restaurant.
3. The main factor that a court would consider in determining whether the franchise was wrongfully terminated is the franchisor’s good faith and the fair dealing.
2. If Carlos Del Rey operated as sole proprietorship he would be the only one that bears the loss for the damage of the kitchen after the fire, because he is the owner of the business. That means he alone bears the burden and he will have unlimited liability, or legal responsibility if anything were to happen to the restaurant.
3. The main factor that a court would consider in determining whether the franchise was wrongfully terminated is the franchisor’s good faith and the fair dealing.