Larese v. Creamland Dairies, Inc.

767 F.2d 716 (1985)

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Nature of the Case

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Facts

P entered into a 10-year franchise agreement with D in 1974. The agreement stated that the franchisee shall not assign, transfer, or sublet the franchise without the prior written consent of the Franchisor and Baskin Robbins and that any transfer without consent was null and void. P attempted to sell its rights in February and August of 1979, but D did not consent. P sued because D unreasonably withheld consent. The verdict went to D because the trial court ruled that D had an absolute, unqualified right to refuse to consent to the proposed sale. P appealed in that D was under an obligation of good faith.