Defendants, a franchisor and related parties, appealed orders from the Superior Court of Marin County (California), which granted a preliminary injunction permitting plaintiff franchisees to continue operating three restaurants pending a trial on a contract dispute with the franchisor.
California Business Lawyer & Corporate Lawyer, Inc. are lawyers restaurant Los Angele
In assignment agreements, the franchisor consented to the previous owners’ assignment of their franchise agreements for several restaurants to the franchisees. The franchise agreements contained language to the effect that the maintenance of a close personal working relationship with the franchisor was the essence of the franchise. The parties disputed whether the franchisor had made an enforceable promise to the franchisees to extend the franchise terms for three of the restaurants. The court held that the remedy of specific performance was available because the franchise agreements were not contracts for the personal services of the franchisees within the meaning of Civ. Code, § 3390. Thus, the principle that an injunction could not be granted to prevent the breach of a personal services contract was inapplicable. A close personal working relationship did not automatically equate to personal services as defined by law. For a contract to be a personal service contract, there had to be a special relationship between the parties or a special knowledge or skill possessed by the party performing, such that no other performance could meet the obligations of the contract.
The court affirmed the trial court’s orders.
*
Be the first to comment.