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I talked about the case Scheck v Burger King, in which Scheck is the franchisee and entered into a franchise agreement with Burger King, the franchisor, to own and operate a Burger King franchise location. Burger King opened another location within a couple miles of Mr. Scheck's location. There was no restriction in the franchise agreement that prevented Burger King from opening a location near the franchisee's location. What did the court conclude? Select the best answer.- The case was dismissed. The contract terms (franchise agreement) clearly did not restrict Burger King from opening a restaurant near Mr. Scheck's location.- Mr. Scheck, the franchisee should have read the franchise agreement more thoroughly before signing it, he is now bound to the terms and has no redress for this encroachment on his territory.- The court ruled in favor of Burger King, the franchisor, and concluded Mr. Scheck simply has "buyer's remorse", there is risk in every business transaction.- Even though the franchise agreement did not address territory, the court found Burger King had violated the implied covenant of good faith and fair dealing present in every commercial contract.
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