HomeMy WebLinkAbout00-06320
>-
" <
, .
In the
COURTOFCO~ONPLEASOFCUMBERLANDCOUNTY
Pennsylvania
CIVIL ACTION - LAW
JOYCE M. RAUDABAUGH and
JOHN RAUDABAUGH,
Plaintiffs
No. 00-6320
Vs.
FRANCHISE REALTY INTERSTATE
CORPORATION and
McDONALD'S RESTAURANTS OF
ILLINOIS, INC.,
Defendants
NOTICE
You have been sued in Court. If you wish to defend against the claims set forth in the following
pages, you must take action within twenty (20) days after this Notice and Complaint are served, by
entering a written appearance personally, or by attorney, and filing in writing with the Court your
defenses or objections to the claims set forth against you. You are warned that if you fail to do so, the
case may proceed without you, and a judgment may be entered against you by the Court without further
notice for any money claimed in the Complaint or for any other claim or relief requested by the
Plaintiff. You may lose money or property or other rights important to you.
YOU SHOULD TAKE THIS PAPER TO YOUR LA WYERAT ONCE. IF YOU DO NOT
HA VB A LAWYER, OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET
FORTH ON THE FOLLOWING PAGE TO FIND OUT WHERE YOU CAN GET LEGAL HELP.
Court Administrator
Cumberland County Courthouse
One Courthouse Square, Fourth Floor
Carlisle, P A 17013
(717) 240-6700
II
-
-,
TO THE PROTHONOTARY:
Please enter my appearance on behalf of the Plaintiffs.
REILLY, WOLFSON, SHEFFEY, SCHRUM
AND LUNDBERG LLP
By:
W. Fenton, ID #55656
Counsel for Plaintiffs
1601 Cornwall Road
Lebanon,PA 17042
(717) 273-3733
Date: December
/'/
,2000
I
II
_..J; "
In the
COURT OF COMMON PLEAS OF CUMBERLAND COUNTY
Pennsylvania
CIVIL ACTION - LAW
JOYCE M. RAUDABAUGH and
JOHN RAUDABAUGH,
Plaintiffs
No. 00-6320
Vs.
FRANCHISE REALTY INTERSTATE
CORPORATION and
McDONALD'S RESTAURANTS OF
ILLINOIS, INC.,
Defendants
COMPLAINT
AND NOW, come the Plaintiffs, Joyce M. Raudabaugh and John Raudabaugh, through their
counsel, and file this Complaint, asserting the following in support thereof:
1. Plaintiff is Joyce M. Raudabaugh, an individual who resides at 388 Old Stonehouse
Road, Mechanicsburg, Pennsylvania, 17055.
2. Plaintiff is John Raudabaugh, an individual who resides at 388 Old Stonehouse Road,
Mechanicsburg, Pennsylvania, 17055.
3. At all times material hereto, Plaintiffs were wife and husband.
II
--:
4. Defendant is Franchise Realty Interstate Corporation, a corporation organized and
existing pursuant to the laws of the state of Illinois, having a principal place of business located at
608 East High Street, Carlisle, Pennsylvania, 17013.
5. Defendant is McDonald's Restaurants of Illinois, Inc., a corporation organized and
existing pursuantto the laws of the state of Illinois, having a registered address of33 North LaSalle
Street, Chicago, Illinois, 60602.
6. The Defendant, Franchise Realty Interstate Corporation is the record owner of certain
property located at 608 East High Street, Carlisle, Pennsylvania.
7. The property located at 608 East High Street, Carlisle, Pennsylvania, is improved by
means of a restaurant located on that property, identified as a McDonald's Restaurant.
8. Plaintiffs believe, and therefore aver, that the McDonald's Restaurant located at the
608 East High Street, Carlisle, Pennsylvania, location is operated and maintained by the Defendant,
McDonald's Restaurants of Illinois, Inc.
9. The Defendants, jointly, hold themselves out as providing services to the public in
the form of a restaurant located at the aforementioned location. As such, Defendants provide a
physical location for members of the public to visit in order to purchase food and, ancillary thereto,
to use certain restroom facilities provided by Defendants. In the course of this business, Defendants
invite and expect the public to visit such facilities.
10. On December 18, 1999, Plaintiff, Joyce Raudabaugh, visited the 608 East High Street
location to visit and patronize the restaurant maintained by Defendants.
2
II
-
-
J.'
II. On that date, and for a period of time prior to Plaintiff's visit, a large collection of
water or other substance was located on the floor of the restaurant.
12. The water or other substance located on the floor of the restaurant was present for
such time that Defendants knew, or should have known, of its presence and the danger posed by such
substance to patrons.
13. In her visit to the restaurant on December 18, 1999, the Plaintiff, Joyce Raudabaugh,
stepped into and upon the water or other substance on the floor of the restaurant and, as a result
thereof, was caused to slip and fall to the floor.
14. As a result of the slip and fall of Plaintiff, she incurred certain injuries, including but
not limited to her shoulder, back and leg.
COUNT I - NEGLIGENCE
JOYCE RAUDABAUGH Vs. FRANCHISE REALTY INTERSTATE
CORPORATION and McDONALD'S RESTAURANTS OF ILLINOIS. INC.
15. The averments of Paragraphs 1 through 14, set forth above, are incorporated herein
as if set forth at length.
16. The DefendaJ!lts were negligent in the operation and maintenance of the restaurant
facility, generally and specifically in the following particulars:
(a) In allowing an accumulation of water and/or other substances to
accumulate on the floor of the restaurant;
3
I I
-
j~'O"'^i_
"~",,
b-.-
(b) In failing, in a timely and efficient manner, to clean up or otherwise
remove the accumulation of water or other substances from the floor of the
restaurant;
(c) In failing to post any warning or give any other notice to Plaintiff of
the existence of the accumulation of water or other substances on the floor of the
restaurant prior to her fall; and,
(d) In failing to regularly inspect the area of the restaurant in which
Plaintiff fell, which inspection, if conducted, would have revealed the existence of
the accumulation of water or other substance which caused Plaintiffs fall.
17. But for the negligence of Defendants, set forth above, Plaintiffwould not have fallen
and the injuries suffered would not have been incurred.
18. As a result of her injuries, Plaintiffhas suffered great pain, suffering, inconvenience,
annoyance, humiliation and embarrassment.
19. As a further result to her injuries, Plaintiffhas been forced to incur medical expenses
in an endeavor to cure herself of her injuries.
20. As a furtherresult of the injuries incurred, Plaintiff has suffered a loss of wages due
to an inability to work subsequent to the fall.
WHEREFORE, Plaintiff, Joyce M. Raudabaugh, demands damages in an amount exceeding
the jurisdictional amount requiring arbitration referral by Local Rule.
4
II
COUNT 11- NEGLIGENCE/CONSORTIUM
JOHN RAUDABAUGH Vs. FRANCmSE REALTY INTERSTATE
CORPORATION and McDONALD'S RESTAURANTS OF ILLINOIS. INC.
21. The averments of Paragraphs 1 through 20, set forth above, are incorporated herein
as if set forth at length.
22. As a result ofthe injuries incurred by his wife, Joyce Raudabaugh, the Plaintiff, John
Raudabaugh, has been deprived of her services, companionship and consortium.
WHEREFORE, Plaintiff, John Raudabaugh, demands damages in an amount exceeding the
jurisdictional amount requiring arbitration referral by Local Rule.
REILLY, WOLFSON, SHEFFEY, SCHRUM
AND LUNDBERG LLP
By:
H W.Fenton,ID#55656
Counsel for Plaintiffs
1601 Cornwall Road
Lebanon, P A 17042
(717) 273-3733
Date: December / ~ , 2000
JURY TRIAL DEMANDED
5
II
~ -"-
..
:i:-'
VERIFICATION
This verification is being signed by Harry W. Fenton, counsel for Plaintiffs, as time
constraints do not permit the filing of a verification signed by Plaintiffs. This verification is made
upon personal knowledge as to part and upon information and belief as to other part and is made
pursuant to Pa.R.C.P. 1024(b) and 1024(c). I verify that the statements made in the foregoing
document are, to that extent, true and correct to the best of my knowledge, information and belief.
II
-,,,,",-,
iiilWi'H~Ht~:Ii~IriW~~IIillillt~lilral%!>!i1liillll'-0.iJ;j!..<i$l~*''''J.l,<~~~"'''''~;''
~"~~
_ ~. ^, >"_', "_,=~,,~ _'m~ ,
0" ,Y, __'.
J",""
iir!>1!WII~'~i"".
-
() C> 0
r; a ~n
"" .:::J
'"'tJft:
fJj ni ~"'o' ,
~~~' \""") ;IJ
r-n
-<2: VI ::~~~J
~::=~ CJ - -:' ()
"1",
<c, ,:"j :.:!:]
~f:(~ -;.. ()
p ~.- '-:1 <::5 rq
c:
-- -,,~t
=< -:;:...) 55
Ul -<
..
~.
.
..... ..
In the
COURT OF COMMON PLEAS OF CUMBERLAND COUNTY
Pennsylvania
CIVIL ACTION - LAW
JOYCE M. RAUDABAUGH and
JOHN RAUDABAUGH,
388 Old Stonehouse Road
Mechanicsburg, P A 17055
Plaintiffs
No. CD - ('3~
Vs.
FRANcmSE REALTY INTERSTATE
CORPORATION
608 East High Street
Carlisle,PA 17013 AND
McDONALD'S RESTAURANTS OF
ILLINOIS, INC.
c/o Prentice Hall Corporation
33 North LaSalle Street
Chicago, IL 60602-2607
Defendants
PRAECIPE FOR WRIT OF SUMMONS
II
". <", '"
...
(!,,,~f... '--r~
- '
.
...
r
TO THE PROTHONOTARY:
~k
-.
Please issue a Writ of Summons in the above case. Service to be made upon Defendant,
Franchise Realty Interstate Corporation, by Sherif[ of Cumberland County and upon Defendant,
McDonald's Restaurants of Illinois, Inc., by attorney service.
REILLY, WOLFSON, SHEFFEY, SCHRUM
AND LUNDBERG LLP
By:
~.. ..
/~
arry W. Fenton, ID #55656
Counsel for Plaintiffs
1601 Cornwall Road
Lebanon,PA 17042
(717) 273-3733
Date: SeDtember
If
,2000
.----.1 I I
~-~~'--"ile
A.olEftJiiI'liH.. ~ ~- "'~ - .
- .';, 't!l&;J;;&.li",,,,,,,l>.!till
l__~
'M_~" f~ l$ii "1
,-
,
()
......
......
...J
Y
.'. .
, ~~ ~~_ ".;.I,.
'1lIIii=
~
fZt ~8~
~ I V
~ ~ ~
C'Jff
, ,~-~. "'
.".
(")
~
~tt;.., .
...m
~,
~~
~i5
~
ig
~
"""""- ......
c
o
~.
-0
o
.''(1
.~-.[
;)~;g
~.lr-n
:07
(..Jr)
-.r....
-CR
i"\,
~m
~
~
UI
"
:x
~
.::>
m
'.'
.
- ~
e
~K_"~ ,
.
Commonwealth of Pennsylvania
County of Cumberland
JOYCE M. RAUDA)3AUGH AND
JOHN RAUDABAUGH
388 OID STONEHOUSE ROAD
MECHANICSBURG, PA 17055
vs.
FRANCHISE REALTY INTERSTATE
CORPORATION
608 EAST HIGH STREET
CARLISLE, PA 17013
Court of Common Pleas
No. nuQit-:.QJ7.9n<;;;i.yj..L'J'S!..l:!!L____mn
McDONALD I S RESTAURANTS OF
ILLINOIS, me.
c/o PRENTICE HALL CORPORATION
33 NORTH laSALLE STREET
CHICAGO, IL 60602-2607
In _ ____ <;;;i.Y..:U_kl-Qt!9!L::_!@..V!.__________________
To _fF~c:N__~~_~~Hy__~l}t~_J;:i?tSi:!=~_<;;91P2rAtion and McDonald's Restaurants of Illinois, INc.
You are hereby notified that
Joyce M._ Raudab_augh and _ J_9_~_~~~~~u..'!l.t_____________________________________.._______
---------------------- ----------
the Plaintiff has commenced an action in __u____<::A'!g_J?,c:U_ql}_:-__~~__________________n_______
against you which you are required to defend or a default judgment may be entered against you.
(SEAL)
Curtis R. Long
.------------------------------------------------
. Proth=o~~
Date 3-.~l?!=~!_J:.~!_3.QQQ________
~__2L__~
Deputy L__{J::.
. I
II
~'='~,.," ~ '~~llll~~lliititi~ilii!]Jp:.q' "illfllillWi~iliiir-k"gL,;L",~,o;;".,""""":,,,,"-,,,,,),,~~-,.,'jj,,.J!j~L' :i'J"nr'ff"" '1~'Iil:"
,~~
'~-'.illlill~i'-'1-yJ~
li!llllililli!lij~-
;1 ~"' ~ .0'
.
I H.....IbI-'iJ1 nW()H~ nmn~ if~f:jf:j ~
I . I--' O"\([) "'W'--~ P> 00
I O.....O"oD ~~;~~ &.;~n ~""~~
I . ~g I-'.';;! I
I o t<:I I
I =*3=-....lon n 00 $liJ1 D I-' $l '0
I
I WDO:E; ..... o ~ro H 1-'00 H ....' P. :s: '0
I lJ1 I'" ti. ~ - D Ul rort8Ul o @. II
. VlW ::l ..... rt- - - H t<:I (jJ 00 Ul ""
. "'.....'d~"J I-' r H ~r" (fl iJ10 ~nl 'w
I VlW:>' ro t"' 2~ fil~'z ~ 'N
I O"\W I--'~ ~ 10
I
>, I-'I-'rt "'P> n~ 1-'''' In
.. ..... 0 Ol-l::r:.
S" o:OD ..... ~fD~ I .....m ~ '.....
(!:';@- g ort 'de .~
j ~ N I-' 1-''1 .:>' f€ (;'l '.....
p.t<:I 1m wro H' :1-'
00 I Nrtn ro ~ I-' iJ1 18
..0 i ... "''10 rt .....:0 '
. = oro~ ~@ ~ 'ro
.....~ m Ul VlP. i~
'1 0 ~ I
~ "J I
l:;3 ...
..... '"
g .
I
.
.
L
11
, .lIMn!.!.." ".M.;."._ _.,." ...,.",.,,_.
-~,-._- .'~-'
"
"'_c >" .,
~- ^ ,., ,.,\.. "~"~", '"' '~,.,
JOYCE M. RAUDABAUGH AND JOHN
RAUDABAUGH,
PLAINTIFFS
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
No. 00-6320
VS.
CIVIL ACTION - LAW
FRANCHISE REALTY INTERSTATE CORPORATION
AND McDoNALD'S RESTAURANTS OF ILLINOIS,
INC.,
DEFENDANTS
JURY TRIAL DEMANDED
PRAECIPE FOR RULE TO FILE COMPLAINT
TO THE PROTHONOTARY:
Please issue a rule upon Plaintiff to file a Complaint in the above matter within 20
days after service of the rule or suffer a judgment of non pros.
A:;S' THOMAS & HAFER
B ~. ~1P-
James K. Thomas, II, Esquire
I.D. No. 15613
305 North Front Street
Sixth Floor
P.O. Box 999
Harrisburg, PA 17108-0999
(717) 255-7617
RULE
NOW, ,II) DO. .:2 q
, 2000, RULE ISSUED AS A~
G.d:.2 J:>. d
Prothonotary. ..
. By: ~~,. p - 77(n:?~'Jt., r
Deputy
II
".JLI. b!
o'~
Ii ~,~
,~...",,,,.;,
.~
'iiiJ
,~.~!iIii;<pC,"C-"iI,,"'-1~"',
.~~,~<,-~-,,' ,~~
.,e
~-~."
~"
,.1' _ ~,
,~- ',--' "
C"':'
c:
-:7"
..>'-'-
n-,fT
~~C
Y~'i!_~',
i:: c~~
.',_.,'"<'
::vs
/
:.::~
-<
o
c-
.....,,,.
:~
''''''''--'"',
r.
,.o{I,
.,
;'-_.1
,~?
r'
:'J
.-J
5
~._- .~- ~."
-.w...,
1_,
SHERIFF'S RETURN - U.S. CERTIFIED MAIL
,
CASE NO: 2000-06320 P
COMMONWEALTH OF PENNSYLVANIA
COUNTY OF CUMBERLAND
RAUDABAUGH JOYCE M ET AL
VS.
FRANCHISE REALTY INTERSTATE
R. Thomas Kline
, Sheriff
of Cumberland
County, Pennsylvania, who being duly sworn according to law served the
within named DEFENDANT
,MCDONALD'S RESTAURANTS OF
ILLINOIS INC
by United States Certified Mail postage
prepaid, on the 18th day of September,2000 at 0008:00 HOURS, at
C/O PRENTICE HALL CORPORATION 33 NORTH LASALLE STREET
CHICAGO, IL 60602-2607 , a true
and attested copy of the attached WRIT OF SUMMONS
Together
with
The returned
receipt card was signed by ILLEGIBLE SIGNATURE
09/20/2000
on
Additional Comments:
Sheriff's Costs:
Docketing
Service
Affidavit
Surcharge
6.00
2.99
.00
10.00
.00
18.99
County
Paid by REILLY, WOLFSON, SHEFFEY
on 09/29/2000 .
Sworn and subscribed to before me
this I:i~"e- day of (J)~
.2 <nrUA.D.
~. O. f-hdjJ,.. #
Pr t onotary .
II
"~
. ,
i '~~~' J 'F
SHERIFF'S RETURN - REGULAR
CASE NO: 2000-06320 P
COMMONWEALTH OF PENNSYLVANIA:
COUNTY OF CUMBERLAND
RAUDABAUGH JOYCE M ET AL
VS
FRANCHISE REALTY INTERSTATE
RICHARD SMITH
, Sheriff or Deputy Sheriff of
Cumberland County,Pennsylvania, who being duly sworn according to law,
says, the within WRIT OF SUMMONS
was served upon
FRANCHISE REALTY INTERSTATE CORPORATION
the
DEFENDANT
, at 0009:40 HOURS, on the 21st day of September, 2000
at 608 EAST HIGH STREET
CARLISLE, PA 17013
ANNETTE SNYDER (ASST. MANAGER)
by handing to
a true and attested copy of WRIT OF SUMMONS
together with
and at the same time directing Her attention to the contents thereof.
Sheriff's Costs:
Docketing
Service
Affidavit
Surcharge
18.00
3.10
.00
10.00
.00
31.10
So Answers~.,...,; 1!
~~4'~~~"';
"
R. Thomas Kline
09/29/2000
REILLY, WOLFSON
Sworn and Subscribed to before By:
me this ,11e- day of
(}p~ ,;l.67/iJ A.D.
~ c2 /n~tb., ~
Prothonotary
I II
~ - -.^ , ,"
. !
. Complete ~em \'2. and 3. " Iso clli""~IEiie
item 4 if Restrtcfed Delivery is desired.
. Print your name and address on the reverse
so that we can return the card to you.
. Attach this card to the back of the mailpiece,
or on the front' if space permits.
C. Signature
x
D Agent
1. Article Addressed to:
D. Is delivery address different from item 1? 0 Yes
If YES, enter delivery address below: 0 No
McDonald's Restaurants
of Illinois. Inc.
c/o prentice Hall Corp.
33 N.,i';aSalle St .
Chicago. III 60602-2607
3. Service Type
IX Certified Mail
o Registered
o Insured Mail
o Express Mail
o Return Receipt for Merchandise
DC.C.D.
4. Restricted Delivery? (Extra Fee) 0 Yes
2. Article Nurn~er. (9ORY 'Frn servi~ I~qel),
" 0,' '0 4i' 5015 2395'
PS Form 3811. JUly 1999 Dome$llc Return Receipt
102595-GG-M-1789
--,'-'---~--~-'------'----'.-
__,,':,-,"""'_u
-"',
~-~" -, M> ,~-O_ "-'1," -~_ ._. ~. < ~ -_~" '-~"", _ -'" -,__>> ,', ,_', -'"", ,', ~",-;;J" ~" _~ "'0 _~_";'~ ,_,._;_~'"'- "-~,q'J,,O-."'~'-"'-_ ^ _ .'_"_
,'~ -..~".
,
JOYCE M. RAUDABAUGH AND JOHN
RAUDABAUGH,
PLAINTIFFS
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
No. 00-6320
VS.
CIVIL ACTION - LAW
FRANCHISE REALTY INTERSTATE CORPORATION
AND McDoNALD'S RESTAURANTS OF ILLINOIS,
INC.,
DEFENDANTS
JURY TRIAL DEMANDED
ENTRY OF APPEARANCE
TO THE PROTHONOTARY:
Please enter our appearance on behalf of Defendants Franchise Realty
Interstate Corporation and McDonald's Restaurants of Illinois, Inc. in the above matter.
Respectfully submitted,
THOMAS, THOMAS & HAFER, LLP
by: ~X- ~
James K. Thomas, II, Esquire
1.0. No. 15613
305 North Front Street, 6th Floor
POB 999
Harrisburg, PA 17108-0999
(717) 255-7617
II
- ~" - "~..,-, " ,-, ~-
'.- , " ".,'.,,~~
- ;-~'";"-- '. ' -. . - ~. ,-'--' '" ,.'"' '
""".
"0> _ ..--,.__,^ ~- -- ,-;(''''_' "_-,
<"" ~-~i~
CERTIFICATE OF SERVICE
AND NOW, this ~day of (}rhtut.~
,200.91, Coleen M. Polek,
of the law firm of Thomas, Thomas & Hafer, hereby certify that 1 sent a true and correct
copy of the foregoing document by placing a copy of the same in the United States Mail,
postage prepaid, to the following:
Henry W. Fenton, Esquire
Reilly, Wolfson, Sheffey,
Schrum & Lundberg
1601 Cornwall Road
Lebanon, PA 17042
&fO?1L-
Coleen M. Polek
II
..-,.;..":;.: rliiiilli( ~n
JJ _~,~ <~ _ _~~ _~ ,~"
h
.; ,L l ,;._"~"
1.,-
~..-
,
(")
~;
-of;::
n"}r'i"
2::::'.1
~7r
Us;:....
-<';...;:-
r::C'
~:;:(-,
ZC~
>c:
~3
-,
-,,,,,,,,,.
;--'
,," ~~, v,_ "..",'
c:.:
c;::..
,:::)
C")
"";
I
s~:
.r.-
;::)
(;j
~
--<.
~
JOYCE M. RAUDABAUGH AND JOHN
RAUDABAUGH,
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
PLAINTIFFS
No. 00-6320
VS.
CIVIL ACTION - LAW
FRANCHISE REALTY INTERSTATE
CORPORATION AND McDoNALD'S
RESTAURANTS OF ILLINOIS, INC.,
DEFENDANTS
JURY TRIAL DEMANDED
NOTICE TO PLEAD
You are hereby notified to plead to the enclosed Answer with New Matter within
twenty (20) days from service hereof or a default judgment may be entered against
you.
ANSWER WlTH NEW MATTER OF
McDONALD'S CORPORATION, SUCCESSOR IN INTEREST TO
FRANCHISE REALTY INTERSTATE CORPORATION
1. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 1 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
2. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 2 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
3. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 3 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
4. Denied. Franchise Realty Interstate Corporation no longer exists,
having been merged into McDonald's Corporation in or around January 1980. By
way of further response, McDonald's Corporation is the successor in interest to
II
,. ,
w_~, ,". -, ","~,- ." ~ "" H_" __' ._, Co _
""'--':'
Franchise Realty Interstate Corporation. It is specifically denied that either
McDonald's Corporation or Franchise Realty Interstate Corporation, when the latter
was in existence, had or has a principal place of business at 608 East High Street,
Carlisle, Pennsylvania. Any and all other allegations contained in paragraph 4 are
specifically denied and strict proof thereof is demanded at time of trial.
5. Denied. Defendant McDonald's Corporation makes no answer to said
allegations as it is not directed to McDonald's Corporation and no answer is
required.
6. Denied. It is specifically denied that Defendant Franchise Realty
Interstate Corporation is or was the record owner of certain property located at 608
East High Street, Carlisle, Pennsylvania.
7. Denied as stated. It is denied that the Answering Defendants are
responsible for a "McDonald's Restaurant" at the described location. It is admitted
only that a restaurant is located at the subject location which is subject to a
franchise agreement to Kenmar Enterprises, Inc.
8. Denied. Defendant McDonald's Corporation makes no answer to said
allegation as it is not directed to McDonald's Corporation and no answer is required.
9. Denied.
10. Denied. Answering Defendant is without information or belief as to
when or if Plaintiff Joyce Raudabaugh visited the "McDonald's Restaurant" located
at 608 East High Street, Carlisle, Pennsylvania. It is specifically denied that said
restaurant was owned, operated or maintained by McDonald's Corporation. Any
and all other allegations contained in paragraph 10 are specifically denied and strict
proof thereof is demanded at time of trial.
2
II
<" ,',," .'c n' ",,'
,",*,>
~ "" -."."-",,',',, " ,-. _",'",;,y. H_
. ~'!
1;:
H
fl
11. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 11 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
12. Denied. It is specifically denied that McDonald's Corporation knew or
should have known of the presence of water or other dangerous condition on the
floor of the subject restaurant at any time material hereto. Furthermore, it is
denied that the Answering Defendant controlled the store on December 18, 1999.
Any and all other allegations contained in paragraph 12 are specifically denied and
strict proof thereof is demanded at time of trial.
13. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 13 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
14. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 14 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
COUNT I - NEGLIGENCE
Joyce Raudabaugh v. Franchise Realty Interstate Corporation and
McDonald's Restaurants of Illinois, Inc.
15. Answering Defendant incorporates by reference the answers to
Plaintiffs' Complaint as though the same were fully set forth herein at length.
16. (a-d) Denied. The allegations contained in paragraphs 16 (a-d) are
conclusions of law to which no response is required. To the extent a response is
deemed to be required, the allegations are denied pursuant to Pa.R.C.P. 1029(e).
By way of further response, Ans)Nering pefend,lnt specifically denies that it owned,
3
II
',-
,-> ~~ . '_M _
, ,
"--';
operated or maintained the "McDonald's Restaurant" located at 608 East High
Street, Carlisle, Pennsylvania on December 18, 1999, or at any time material
hereto.
17. Denied. The allegations contained in paragraph 17 are conclusions of
law to which no response is required. To the extent a response is deemed to be
required, the allegations are denied pursuant to Pa.R,C.P. 1029(e).
18. Denied. Answering Defendants are without information or belief as to
the truth of the averments of paragraph 18 of Plaintiffs' Complaint and the same
are therefore denied and proof thereof is demanded at time of trial.
19. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 19 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
20. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 20 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
WHEREFORE, Defendant, McDonald's Corporation, successor in interest to
Franchise Realty Interstate Corporation, respectfully requests that judgment be
entered in its favor and against Plaintiffs, Joyce M. and John Raudabaugh.
COUNT II - NEGLIGENCE/CONSORTIUM
30hn Raudabaugh v, Franchise Realty Interstate Corporation and
McDonald's Restaurants of Illinois, Inc.
21. Answering Defendant incorporates by reference the answers to
Plaintiff's Complaint as though the same were fully set forth herein at length.
4
II
"~'"" ,-,
22. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 22 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
WHEREFORE, Defendant, McDonald's Corporation, successor in interest to
Franchise Realty Interstate Corporation, respectfully requests that judgment be
entered in its favor and against Plaintiffs, Joyce M. and John Raudabaugh.
NEW MATTER
23. Defendant, Franchise Realty Interstate Corporation, no longer exists,
having been merged into McDonald's Corporation in or around January 1980.
24. At the time of the alleged incident involving Plaintiff, Joyce
Raudabaugh, the "McDonald's Restaurant" located at 608 East High Street, Carlisle,
Pennsylvania, was controlled and maintained by Kenmar Enterprises, Inc. pursuant
to the terms of an assigned franchise agreement dated August 2, 1991. A true and
correct copy of portions of the franchise agreement and assignment are attached
hereto as Exhibit A.
25. In fact, Plaintiffs' have commenced a separate lawsuit against Kenmar
Enterprises, Inc. at docket no. 2001-554, Court of Common Pleas of Cumberland
County.
26. Plaintiffs' claims may be barred or reduced by Plaintiffs' own
comparative and/or contributory negligence.
27. Plaintiffs' claims may be barred by the expiration of the applicable
statute of limitations.
28. Some or all of Plaintiffs' injuries may have been caused by parties
other than Answering Defendants.
II
5
, .
'. '"'0 ^
, ~ '
" S
~,
WHEREFORE, Defendant, McDonald's Corporation, successor in interest to
Franchise Realty Interstate Corporation, respectfully requests that judgment be
entered in its favor and against Plaintiffs, Joyce M. and John Raudabaugh.
Respectfully submitted,
THOMAS, THOMAS &. HAFER, LLP
by:
\~ -====-
James K. Thomas, II, Esquire
Brooks R. Foland, Esquire
I.D. Nos. 15613/70102
305 North Front Street, 6th Floor
POB 999
Harrisburg, PA 17108-0999
(717) 255-7626
:128927.1
Attorneys for Defendants
6
II
~_ I
~
"
VERIFICATION
The undersigned, having read the foregoing Answer and New Matter verifies that the
responses are based on information furnished to counsel, which information has been gathered
by counsel in the course of this lawsuit. The language of the pleading is that of counsel and not
of signer. Signer verifies that he has read the foregoing Answer and New Matter and that it is
true and correct to the best of the signer's knowledge, information and belief. To the extent that
the contents of the foregoing document are that of counsel, verifier has relied upon counsel in
making this verification. This verification is made subject to the penalties of 18P A c.s.4904
relating to unsworn falsification to authorities.
B
Date: 9> d..rl --B7
II
"
,...~:..;
\;:,/"
, ".'';:\' ;'.
;,. McDon~ld"S
. ,;. ,
_ :-'.@
.
'^ ';:
.,
'--:
-
"
r-.
.;
McDonald's Corporation
McDonald's Plaza
Oak Brook, Illinois 60521
Direct Dial Number
708/575-6196
Messrs_
Bernard
Levine
c/o The Golden M Company, Inc.
6000 Executive Building
Suite 515
Rockville, MD 20852
Murray Levine,
w. Levine and Kenneth
FRANCHISE LETTER AGREEMENT
(REWRITE)
August 2, 1991
RE:
McDonald's Restaurant
608 East High Street
CARLISLE, PENNSYLVANIA
Gentlemen:
McDonald's Corporation *( "McDonald's") hereby offers you a franchise
to operate the above-described restaurant ("Restaurant"), in
accordance with our rewrite commitment letter dated
May 2, 1988 , and as set forth below.
Subject to your acceptance, to be evidenced by your signature at
the end of this Franchise Letter Agreement, the terms of the
franchise between you and McDonald's are as follows:
1. The term of this franchise shall commence on
August 2, 1991 and shall expire on August 1, 2011
unless terminated prior thereto pursuant to the provisions of the
License Agreement ("License"), attached as Exhibit A, and/or the
Operator's Lease ("Lease"), attached as Exhibit B, both of which
Exhibits are incorporated herein and made a part hereof by
reference, which together with this Franchise Letter Agreement are
referred to as the "Franchise."
2. This Franchise is granted to you only for the operation
of the Restaurant, and the rights granted under the Franchise are
limited to the above-described location.
3. McDonald's will grant to you the rights to occupy the
Restaurant and to use the McDonald's System, including its
associated trademarks and service marks, in the operation of the
Restaurant, as more fully set forth in the License and the Lease.
Upon your acceptance of this Franchise Letter Agreement, you do
hereby agree to the provisions of, and do hereby agree to execute
the License and Lease. .
RW 5/91
10451
*d/b/a Delaware McDonald's Corporation
DEFENDA"NT'S
i! EXHIBIT
j A
-'->--
.:J
'"
I,.
.~
"
,~
.r-
r;
.
Any act or failure to act which constitutes a breach of or default
of the obligations, conditions, terms and covenants of the License
and Lease shall constitute a breach of this entire Franchise Letter
Agreement. Notice thereof shall constitute notice of a breach of
this entire Franchise Letter Agreement, and any resulting
termination shall terminate the Franchise in its entirety.
4. In consideration of the rights granted by this Franchise,
including, but not limited to, the right to utilize the actual and
potential drawing power of a McDonald's restaurant, you agree to
make the following cash payments to McDonald's:
(a) An initial fee of $~ payable upon the
execution of this Franchise Letter Agreement. This
initial fee shall be and hereby is deemed to be earned at
such time as you have executed copies of the License and
Lease.
(b) A non-interest bearing deposit of ~as
security for your faithful performance of the terms of
this Franchise Letter Agreement (including all provisions
of the License and Lease), has been waived. However,
McDonald's hereby reserves the right to require a
securi ty deposit as provided for in Article 3.07" of the
Lease as a condition to the Landlord's consent to any
transfer of this Franchise.
(C) During the term of this Franchise, the following
monthly payments shall become due as more specifically
set forth in the License and Lease and shall be paid to
McDonald's:
(I) a monthly service fee payment of .. of
monthly gross sales; and
(2) a monthly rental payment equal to the basic
rent amount, plus the percentage of monthly gross
sales in excess of the monthly gross sales amount,
as outlined below:
Years:
08/02/91
through
08/01/11
Basic Rent:
$~
Percentage
Rent:
~
Monthly
Gross Sales:
$
-2-
,I
.~
-
1_,
....~..-,,;"
.
.- .
~ .
(d) All real estate taxes and special and general
assessments which may be levied or assessed upon the
Restaurant and any sales, rent, excise, gross receipts
tax or any other tax regardless of designation which is
levied or assessed against the rental of the Restaurant.
(e) All other charges imposed upon McDonald's under the
terms of any lease it has for the property.
5. You hereby acknowledge that you have read and understand
all obligations being undertaken in this Franchise Letter Agree-
ment, including, but not limited to, the fact that you shall be and
hereby are responsible for the cost 'ur' tl;;l'H!r 'fbllowing items by
payments by you to third parties during the term of the Franchise
as more fully set forth in the License and Lease.
(a) The purchase of foodstuffs and supplies which meet
McDonald's specifications and quality standards.
.,.--~."....",-.~
(b) The expenditure for advertising and promotion during
each calendar year of a minimum amount equal to ~ of
gross sales of the Restaurant.
(c) The maintenance of the Restaurant pra~ises and its
equipment and furnishings in good repair.
(d) The payment of all charges for gas, electricity,
water or other utilities, and sewer charges, if
applicable.
(e) The payment for the insurance coverages required
under the Franchise.
. .....->'h-
6. This Franchise is offered to: Murray Levine, .
Bernard W. Levine and Kenneth Levine
personally, and to no others, and may not be accepted by any other
person or corporation, or transferred by assignment, will or by
operation of law. Following acceptance, the Franchise may be
assigned only in accordance with the procedures and forms pre-
scribed by McDonald's and only to a corporation which is wholly and
exclusively owned by you. No other individual or corporation shall
acquire any interest, whether direct or indirect, hereunder,
whether by stock ownership or otherwise, without McDonald's prior
written consent.
,
7. It is understood and agreed that neither McDonald's nor
anyone acting on behalf of McDenald's'bas made any representations,
inducements, promises, or agreements, orally or otherwise, res-
pecting the subject matter of this Franchise Letter Agreement which
is not embodied herein or set fortrt in the Uniform Franchise
'-3-
,
II
~ ~........ ~ "_'"M~_
""
"0'
.
-.
r~
.,.
r,
Offering Circular for Prospectiva Franchisees, referred to in
paragraph 10 hereof, and you agree that the terms of the Franchise
Letter Agreement shall not be modified or amended in any way,
except by a written document which is executed by you and
McDonald's and which is specifically identified as an amendment
hereto.
Murray Levine, Bernard W. are
8. Levine and Kenneth Levine ~ designated to personally
devote full time and best efforts to the operation of the
Restaurant.
9. It is also understood and agreed that no future franchise
or offers of franchises for additional McDonald's restaurants,
other than the Restaurant, have been promised to you and that any
such offer shall be in writing, executed by McDonald's and speci-
fically identified as a Franchise Letter Agreement or Rewrite
Commitment Letter.
10. In accordance with various state and federal laws, you
must have received the Uniform Franchise Offering Circular for
Prospective Franchisees, together with various attachments thereto,
("UFOC") ten (10) business days before you sign any Franchise
documents or pay anything to McDonald's. You hereby acknowledge
receipt of the UFOC delivered to you on July 8, 1991
in accordance with such laws.
In addition, under the Federal Trade Commission Trade Regulation
Rule on Franchising and in accordance with various state statutes
you must have received all Franchise documents five (2-.)
business days before you sign them or pay anything to McDonald's.
You hereby acknowledge receipt of such documents delivered to you
in accordance with such laws.
11. If you intend to accept this Franchise Letter Agreement
on the terms and conditions described above, please evidence your
acceptance after you have held the Franchise documents and UFOC for
the prescribed time periods by signing in the space indicated at
the bottom of this Franchise Letter Agreement and return it with
the License and Lease to the undersigned together with the payment
due under paragraph 4 hereof.
If you intend to reject this Franchise Letter Agreement, please
evidence your rejection after the prescribed time periods by
signing in the space indicated and return it with the License and
Lease to the undersigned.
12. This Franchise Letter Agreement, the License and Lease
together with your payment must be received by an authorized
representative of McDonald's no later than August 2, 1991
If the prescribed holding time periods have not then expired, this
-4-
II
--
Mh.. ~._~
I ,. ~ ,--
"J;lI-[
-
,...,
.,
r:
-"
r-,
.'
deadline is hereby extended to the expiration of the prescribed
time periods. Your acceptance of this Franchise Letter Agreement
is specifically conditioned upon and subject to your executing and
returning to McDonald's this Franchise Letter Agreement, the
License and Lease and your payment in the manner and within the
time period set forth herein.
13. Do not sign any Franchise documents or make any payment
to McDonald's before expiration of the prescribed time periods.
For purposes of determining the time periods business days are
Monday through Friday excluding holidays.
If this Franchise Letter Agreement, the License and Lease and your
payment are not received as herein provided, it shall constitute a
rejection of the Franchise, in which case this Franchise Letter
Agreement shall be null and void, and the parties shall have no
rights, obligations or liabilities thereunder.
Very t=ly yours,
McDONALD'S CORPORATION, d/b/a
DelaLar McDonald's Corporation
I '
f /
By: ~ .
V U fJ- Stac owiak
AS A T VICE PR DEN
THE FOREGOING FRANCHISE LETTER AGREEMENT IS ACCEPTED AND
CONSTITUTES A B~NDIN AGREEMENT WITH THE UNDERSIGNED.
011 jL~. c.. n 0
t 8/1/91 ' \~LU\.,c;...-_ /
Mu.rr~ Lev.ine Date Bernard W. Lev~ne
firml ~ 8/1/91
Kenn th Levine Date
THE FOREGOING FRANCHISE LETTER AGREEMENT IS REJECTED AND ALL
DOCUMENTS ENCLOSED HEREIN WILL BE RETURNED WITH THIS AGREEMENT.
8/1/91
Date
Date
Date
~5-
II
.
.
-
1/iIll'-,
'.'
.
.
ASSIGNMENT AND CONSENT TO ASSIGNMENT
OF FRANCHISE TO A CORPORATION
Parties:
McDonald's Corporation, d/b/a Delaware
McDonald's Corporation
("McDonald's)
Bernard W. Levine
("Assignor");
KENMAR Ente'1'rises Inc.
a Pennsylvania Corporation;
C' Assignee")
and those shareholders listed on Exhibit A attached hereto and hereby made a part
hereof (collectively referred to as "Shareholders")
Date: December I, 1994
WHEREAS, McDonaldls or its predecessors granted a franchise to Assignor, including a
License Agreement or Franchise Agreement dated [See Exhibit B], ("License") and an Operatorls
Lease dated [See Exhibit B], ("Lease"), for the purpose of operating a McDonald's restaurant
located at [See Exhibit B] ("Restaurant");
WHEREAS, Assignor desires to transfer the rights in the franchise, including the License
and Lease, ("Franchise") to the Assignee; and
WHEREAS, the parties acknowledge this consent is necessary to insure the ability of
McDonald's to have the type of operators who will operate the Restaurant business cnnsistent
with McDonald's image in the specific community and in the nation as a whole of having a
wholesome atmosphere attractive to children and families.
NOW, THEREFORE, to induce McDonald's to execute this Assignment and Consent to
Assignment of Franchise to a Corporation (Assignment"), and in consideration of the premises,
promises, covenants, warranties and representations herein contained, the parties agree as follows:
I. Assignor, in consideration oU1O.00 and other good and valuable consideration,
hereby assigns, transfers and sets over to Assignee aU the right, title and interest of Assignor in
and to the Franchise, subject to the terms and conditions orthe Franchise.
2.
The effective date of the Assignment shall be August I, 1994.
3. Assignee hereby covenants and agrees to pay all fees and will perfonn all the terms
and conditions of the Franchise.
4. Assignor is in no way discharged from personal liability t~ McDonald's by tillS
Assignment and Assignor specifically agrees to remain personally liable for the full and faithful
performance of the agreements and covenants of the Franchise.
5. Assignor, Assignee and Shareholders, jointly and severally, agree, represent and
warrant that they shall not make or pennit any direct or indirect subsequent assignment or
hypothecation of the Franchise, whether voluntarily or by operation oflaw, without the prior
written consent of McDonald's given in accordance with the Franchise and this Assignment.
6. In addition to the above covenants, Assignor and Assignee agree that if any trusts
are shareholders of shares of stock of Assignee that:
lWLEV.DOC (12109/94)
1. &.
.
.
(a) The beneficial interests in said trusts shall not be assigned without tbe prior
written consent of McDonald's and shall be in accordance with the tenns of this Assigrunent and
the License.
(b) Assignor and Assignee warrant that the Trust Agreement supplied to
McDonald's is a true and correct copy of the Trust Agreement as it is presently in force. Assignor
and Assignee agree not to make any amendments to the Trust Agreement without first giving
McDonald's an opportunity to review and approve same.
7. Since the transfer of an interest in the Assignee will in substance constitute an
assignment of the Franchise, which Assignor and Assignee have agreed not to transfer except in
accordance with certain restrictions, Assignor, Assignee and each Shareholder, jointly and
severally, further represent and warrant that: (i) they are the only persons andlor entities with
equity interests in Assignee; (ii) the extent of such equity interests are as set forth on Exhibit A
attached hereto, and this equity ownership is applicable to all McDonald's franchises previously
assigned to Assignee; (iii) there are no obligations or intentions to issue additional equity interests
in Assignee; and (iv) the only persons having a beneficial interest in any trust shareholder are as
listed in Exhibit A attached hereto. Assignee and each Shareholder, jointly and severally, agree
they shall not make or pennit, directly or indirectly, the creation of new or additional equity
interests in Assignee or make or permit any subsequent assignment or transfer thereof, or of any
issued and outstanding equity interests either voluntarily or by operation of/aw, including, but not
limited to: (a) transfers to successor trustees whether or not such transfer may already be
provided for in any Trust Agreement under which any trustee shareholder derives its authority;
and (b) any hypothecation or other encumbrance of such equity interest without the written
consent of McDonald's first had and obtained in accordance with the provisions of the Franchise
and this Assigrunent. Pennanent incapacity ofany Shareholder shall be deemed to be a transfer by
operation oflaw for purposes of this Assignmenl As used herein the term lIequity interest(s)1l
shall include direct or indirect interests in the equity of the Assignee or the business risk of the
Restaurant, including, but not limited to, interests allegedly denominated as debt but which in
substance encompass the type of risk-taking interest described herein or any interest in the profits
of the Restaurant.
If the equity ownership set forth on Exhibit A reflects a change in the equity
ownership nf Assignee previously communicated to McDonald's, Assignee and Assignor hereby
authorize McDonald's to add to Exhibit A a listing of all franchises owned by Assignee. Assignor
and Assignee further acknowledge and agree that the equity ownership as set forth on Exlubit A
shall be applicable to all restaurants listed on the Assigmnent and on Exhibit A, and shall be
effective without any further action by the parties.
. 8. McDonald's hereby consents to the assigrunent of the Franchise to Assignee as
required by the Franchise upon the following conditions:
(a) McDonald's has been induced to execute this A5figrunent by the
agreements, representations and warranties executed and undertaken by Assignor, Assignee and
Shareholders as set forth herein. .
(b) The granting of this consent is in no way either an approval by McDonald's
of the corporate charter or any other documents pertaining to Assignee and insofar as the tenns of
same may conflict with or contradict the tenns of this Assigrunent said tenns are expressly
disclaimed.
.
(c) Assignor andlor Assignee shall legend all issued and outstanding shares of
stock of Assignee and future issues of shares of stock of Assignee with the following legend:
-2-
.
.
" ],,'
,
D
.
.
. .
This stock may not be pledged, sold, assigned or otherwise transferred, in whole or
in part, voluntarily or by operation oflaw, without the prior written consent of
McDonald's Corporation. Any and all transfers are also subject to the terms of the
Franchise, including the License Agreement or Franchise Agreement and
Operator's Lease, or other applicable agreements, for each McDonald!s restaurant
operated by KENMAR Enterprises, Inc.
Assignor and/or Assignee shall send to McDonald's, upon request, a copy of all
outstanding certificates of stock of Assignee with the above legend typed on such certificates.
(d) The granting of this consent to a trust shareholder is not a consent to any
proposed future transfers of shares of stock of Assignee to beneficiaries upon the attainment of a
certain age or other condition. Any and all future transfers Of vesting of shares of stock of
Assignee are subject to the terms of paragraph 9 below.
(e) The granting of this consent is in no way an approval ohny terms of the
Trust Agreement and insofar as said terms may. conflict with or contradict the terms of this
Assignment, they are expressly disclaimed,
9. The parties agree that in determining whether to grant or to withhold consent to
the transfer (whether voluntary or by operation oflaw) of an interest in Assignee or the Franchise,
at any future date, McDonald's shall consider of each prospective transferee, by way ofilIustration
and not limitation, the following: (i) work experience and aptitude; (iI) financial background; (Iii)
character; (iv) ability to personally devote full time and best efforts to managing the Restaurant;
(v) residence in the locality of the Restaurant; (vi) equity interest in the Restaurant; (vii)
conflicting interests; (viii) whether or not, in McDonald's sole determination, the transferee
intends to be active in the operations of the Restaurant; and (Ix) such other criteria and conditions
as McDonald's shall then apply in the case of an application for a new franchise to operate a
McDonald's restaurant. Upon request to transfer the Franchise or an interest in Assignee,
McDonald's consent to such transfer shall also be conditioned each upon such transferee's
execution of an agreement by which he personally assumes full and unconditional liability for and
agrees to perform from the date of such transfer all obligations, covenants and agreements
contained in this Assignment to the same extent as if he had been an original party to this
Assignment.
10. Granting consent to this Assignment does not constitute approval of any
Shareholder as an approved owner/operator. However, Assignee and each Shareholder hereby
covenant and agree to abide by and honor, as if Assignee and each Shareholder were a signatory
thereto, those provisions of the License pertaining to the maintenance and protection of the
McDonald's System, including, but not limited to, those provisions imposing duties of
confidentiality and regulating involvement in other or similar restaurant businesses according to
the terms of the License. Assignee and each Shareholder agree that a breach of this covenant
shall constitute a breach of the License and entitle McDonald's to enforce all remedies available to
it, including, but not limited to, the termination of the License. \
11. The parties' respective successors, assigns, heirs and personal representatives shall
be bound by and receive the benefits ofthis Assignment. All obligations, agreements,
representations and warranties made by more than One party herein shall be joint and several
whether or not so stipulated in the relevant paragraph herein.
12. Assignor, Assignee and Shareholders agree that McDonald's at any time during
normal business hours may examine, review and copy any and all of each of their records, books,
financial records, tax returns or other documents for the purpose ofinsuring compliance with the
Franchise and this Assignment.
-3-
II
.
.
.
.
13. Assignor, Assignee and each Shareholder agree that upon breach of the conditions,
representations, agreements or warranties contained herein, they and each of them shall be
subject, among all other remedies available by law or hereunder, to all reHef and remedies granted
to McDonald's by the Franchise.
14. Assignor represents and warrants that Assignor has notified any and all of
Assignor's lienholdersllenders of this Assignment.
15. All terms and conditions of the Franchise remain in full force and effect, including,
but not limited to, the requirement imposed on Bernard Vi, Levine to personally devote full time
and best efforts to the operation ofthe Restaurant business.
IN Wl1NESS VlHEREOF. the parties set their hands and seals effective the date set forth
above.
McDONALD'S CORPORATION1 d/b/a
DELAWARE McDONALD'S "
,
CORPORATI -j
-'
ASSIGNOR:
By:
ASSIGNEE: KENMAREnterprises, Inc.
By: ~J~ f~
Vice Presi ent
af.
,)
~
\, ), '. ( II '
Bernard W. Levine
SHAREHOLDERS:
....,.....
,J.
. '). "~
Bernard W. Levine
.\
.
-4-
"
-", ^ <" ~>.-~ ~'. -, ",~ .
'~. . , '''.' ,~,'~-~ >, --~
.,"-,'; 'd'" ,~,._",,~~., "'__
1,-
CERTIFICATE OF SERVICE
AND NOW, \hI, :3J!';,y of 8-'1'"# ,200l I, Col,," M.
Polek, of the law firm of Thomas, Thomas & Hafer, hereby certify that I sent a true
and correct copy of the foregoing document by placing a copy of the same in the
United States Mail, postage prepaid, to the following:
Harry W. Fenton, Esquire
Reilly, Wolfson, Sheffey,
Schrum & Lundberg
1601 Cornwall Road
Lebanon, PA 17042
~
Coleen M. Polek
I I
,
..
~ , ~ __'c
" ~, "U"_'~"
,
'-.-~"- "M"_[_>"","m",,,c~__~_ ,',,",,,,,0, "
, ~. I .-, ,,"'-, 'C';'
JOYCE M. RAUDABAUGH AND JOHN
RAUDABAUGH,
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
PLAINTIFFS
NO. 00-6320
VS.
CIVIL ACTION - LAW
FRANCHISE REALTY INTERSTATE
CORPORATION AND McDoNALD'S
RESTAURANTS Of ILLINOIS, INC.,
DEFENDANTS
JURY TRIAL DEMANDED
NOTICE TO PLEAD
You are hereby notified to plead to the enclosed Answer with New Matter within
twenty (20) days from service hereof or a default judgment may be entered against
you.
ANSWER WITH NEW MATTER OF
McDONALD'S RESTAURANTS OF ILLINOIS, INC.
1. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 1 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
2. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 2 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
3. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 3 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
4. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 4 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
_ ." ~ _ w
,-. ___,__" ^--o_'
, . :.-' ,~-''''-'',' -,~ " "
- ",'-",,-
5. Admitted.
6. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 6 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
7. Denied as stated. It is denied that the Answering Defendant is
responsible for a "McDonald's Restaurant" at the described location. It is admitted
only that a restaurant is located at the subject location.
8. Denied. It is specifically denied that the "McDonald's Restaurant"
located at 608 East High Street, Carlisle, Pennsylvania is operated or maintained by
Answering Defendant.
9. Denied. It is specifically denied that Answering Defendant has held
itself out at any time material hereto as providing services to the public in the form
of a restaurant located at 608 East High Street, Carlisle, Pennsylvania or that
Answering Defendant provided a physical location for members of the public to visit
in order to purchase food or to use certain restroom facilities ancillary thereto. It is
further denied that Answering Defendant invited and/or expected the public to visit
such facilities. Defendant incorporates herein by reference its paragraphs 7 and 8
of this Answer.
10. Denied. Answering Defendant is without information or belief as to
when or if Plaintiff Joyce Raudabaugh visited the "McDonald's Restaurant" located
at 608 East High Street, Carlisle, Pennsylvania. It is specifically denied that said
restaurant was owned, operated or maintained by Answering Defendant. Any and
all other allegations contained in paragraph 10 are specifically denied and strict
proof thereof is demanded at time of trial.
4
-".
,.
. 0-' > " '='-, _ ,>~ .., ~.. .~"
,
~ .", , ;' ,
" __~,__",>,.. ,','----"'>--S,."'-,~_"',_;, ._",_., i . ~,
11. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 11 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
12. Denied. It is specifically denied that Answering Defendant knew or
should have known of the presence of water or other dangerous condition on the
floor of the subject restaurant at any time material hereto. Furthermore, it is
denied that the Answering Defendant operated, maintained or controlled the store
on December 18, 1999. Any and all other allegations contained in paragraph 12
are specifically denied and strict proof thereof is demanded at time of trial.
13. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 13 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
14. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 14 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
COUNT I - NEGLIGENCE
Joyce Raudabaugh v. Franchise Realty Interstate Corporation and
McDonald's Restaurants of Illinois, Inc.
15. Answering Defendant incorporates by reference the answers to
Plaintiffs' Complaint as though the same were fully set forth herein at length.
16. (a-d) Denied. The allegations contained in paragraphs 16 (a-d) are
conclusions of law to which no response is required. To the extent a response is
deemed to be required, the allegations are denied pursuant to Pa.R.C.P. 1029(e).
By way of further response, Answering Defendant specifically denies that it owns,
;3
I I
_'0-"' '_"
, ~,-~ --,.-
, .," .~
" '" ~ - ~',-~.-""-"'''-'-
">''<'-"
operates or maintains the "McDonald's Restaurant" located at 608 East High Street,
Carlisle, Pennsylvania on December 18, 1999, or at any time material hereto.
17. Denied. The allegations contained in paragraph 17 are conclusions of
law to which no response is required. To the extent a response is deemed to be
required, the allegations are denied pursuant to Pa.R.C.P. 1029(e).
18. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 18 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
19. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 19 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
20. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 20 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
WHEREFORE, Defendant, McDonald's Restaurants of Illinois, Inc., respectfully
requests that judgment be entered in its favor and against Plaintiffs, Joyce M. and
John Raudabaugh.
COUNT II - NEGLIGENCE/CONSORTIUM
John Raudabaugh v. Franchise Realty Interstate Corporation and
McDonald's Restaurants of Illinois, Inc.
21. Answering Defendant incorporates by reference the answers to
Plaintiff's Complaint as though the same were fully set forth herein at length.
22. Denied. Answering Defendant is without information or belief as to the
truth of the averments of paragraph 22 of Plaintiffs' Complaint and the same are
therefore denied and proof thereof is demanded at time of trial.
4
I I
" .-," ~.
. H'- _A' ,- _ "A_ 'V ,0 -- '." ',~..
- "', .,-, -".-",." ,-,~-;
,1 -~~,;-'C
WHEREFORE, Defendant, McDonald's Restaurants of Illinois, Inc., respectfully
requests that judgment be entered in its favor and against Plaintiffs, Joyce M. and
John Raudabaugh.
NEW MATTER
23. Defendant, McDonald's Restaurants of Illinois, Inc., does not own or
operate the "McDonald's Restaurant" located at 608 East High Street, Carlisle,
Pennsylvania.
24. Defendant, McDonald's Restaurants of Illinois, Inc., does not
participate in the management of the "McDonald's Restaurant" located at 608 East
High Street, Carlisle, Pennsylvania.
25. Defendant, McDonald's Restaurants of Illinois, Inc., does not file a tax
return for or on behalf of the "McDonald's Restaurant" located at 608 East High
Street, Carlisle, Pennsylvania.
26. Defendant, McDonald's Restaurants of Illinois, Inc., does not, nor does
it have the right to, hire, discharge or discipline employees of the "McDonald's
Restaurant" located at 608 East High Street, Carlisle, Pennsylvania.
27. Defendant, McDonald's Restaurants of Illinois, Inc., does not, nor does
it have the responsibility or authority for maintenance of the premises of the
"McDonald's Restaurant" located at 608 East High Street, Carlisle, Pennsylvania.
28. Defendant, McDonald's Restaurants of Illinois, Inc., does not, nor does
it have the right to, control any of the activities necessary to carryon the business
operations of the "McDonald's Restaurant" located at 608 East High Street, Carlisle,
Pennsylvania.
5
I I
. '~ _, _'0' ,_,
->,'-,">~ ~,,-, -'~ ,,,,,,""',,,, -,'" -, ,
j - -~",
29. At the time of the alleged incident involving Plaintiff, Joyce
Raudabaugh, it is believed that the "McDonald's Restaurant" located at 608 East
High Street, Carlisle, Pennsylvania, was controlled and maintained by Kenmar
Enterprises, Inc. pursuant to the terms of an assigned franchise agreement dated
August 2, 1991. A true and correct copy of portions of the franchise agreement
and assignment are attached hereto as Exhibit A.
30. In fact, Plaintiffs' have commenced a separate lawsuit against Kenmar
Enterprises, Inc. at docket no. 2001-554, Court of Common Pleas of Cumberland
County.
31. Plaintiffs' claims may be barred or reduced by Plaintiffs' own
comparative and/or contributory negligence.
32. Plaintiffs' claims may be barred by the expiration of the applicable
statute of limitations.
33. Some or all of Plaintiffs' injuries may have been caused by parties
other than Answering Defendant.
WHEREFORE, Defendant, McDonald's Restaurants of Illinois, Inc., respectfully
requests that judgment be entered in its favor and against Plaintiffs, Joyce M. and
John Raudabaugh.
Respectfully submitted,
THOMAS, THOMAS &. HAFER, LLP
~~
I\.=>
by: ...
am~ K. Tho~ II, Fc:quire
Brooks R. Foland, Esquire
LD. Nos. 15613/70102
305 North Front Street, POB 999
Harrisburg, PA 17108-0999
(717) 255-7626
:128927.1
Attorneys for Defendants
6
I I
~
i,.,;.
,"j
VERIFICATION
STATE OF ILLINOIS )
) SS.:
COUNTY OF DuPAGE )
Robert Johnson, being duly sworn, deposes and verifies the foregoing Answer and New
Matter for and on behalf of McDonald's Restaurants of lllinois, Ioc., and he is duly authorized to
do so; that certain of the matters stated therein are not within the personal knowledge of
deponent; that the facts stated therein have been assembled by authorized agents, employees, and
counsel; and deponent is informed that the facts stated therein are true.
I declare under penalty of perjury under the laws of the State of lllinois that the foregoing
is true to the best of my information, knowledge and beli
Sworn to and subscribed before me
thigd 9 d: day of ~ ,2001.
~O~
My c mnQ8;IGBIM,e$EAl
fUZABETH PUOAbAI.
IIOT ARY F\.I ""
...., BllC, STATE OF
COMM""H.l~, EXPIRE . IUlNoIe
'~~V.. "" 1I.08Rlll/04 ,
-," -~'\;"'''''''-'''.<\A,
II
.,
-,
~
.~
.',
,~
tt
"
r-.
J
"
....r~~:
\~2,I" "'t.
.
,~ Mc80naid"S
,;. "
". ;:>:@
McDonald's Corporation
McDonald's Plaza
Oak Brook. Illinois 60521
Direct Dial Number
708/575-6196
FRANCHISE LETTER AGREEMENT
(REWRITE)
Messrs. Murray Levine,
Bernard W. Levine and Kenneth
Levine
c/o The Golden M Company, Inc.
6000 Executive Building
Suite 515
Rockville, MD 20852
Gentlemen:
August 2, 1991
RE: McDonald's Restaurant
608 East High Street
CARLISLE, PENNSYLVANIA
McDonald's Corporation *( "McDonald's") hereby offers you a franchise
to operate the above-described restaurant ("Restaurant"), in
accordance with our rewrite commitment letter dated
May 2, 1988 , and as set forth below.
Subject to your acceptance, to be evidenced by your signature at
the end of this Franchise Letter Agreement, the terms of the
franchise between you and McDonald's are as follows:
1. The term of this franchise shall commence on
August 2, 1991 and shall expire on August 1, 2011
unless terminated prior thereto pursuant to the provisions of the
License Agreement ("License"), attached as Exhibit A, and/or the
Operator's Lease ("Lease"), attached as Exhibit B, both of which
Exhibits are incorporated herein and made a part hereof by
reference, which together with this Franchise Letter Agreement are
referred to as the "Franchise."
2. This Franchise is granted to you only for the operation
of the Restaurant, and the rights granted under the Franchise are
limited to the above-described location.
3. McDonald's will grant to you the rights to occupy the
Restaurant and to use the McDonald's System, including its
associated trademarks and service marks, in the operation of the
Restaurant, as more fully set forth in the License and the Lease.
Upon your acceptance of this Franchise Letter Agreement, you do
hereby agree to the provisions of, and do hereby agree to execute
the License and Lease.
RW 5/91
10451
*d/b/a Delaware McDonald's Corporation
DEFENDANT'S
.b EXHIBIT
f A
Any act or failure to act which constitutes a breach of or default
of the obligations, conditions, terms and covenants of the License
and Lease shall constitute a breach of this entire Franchise Letter
Agreement. Notice thereof shall constitute notice of a breach of
this entire Franchise Letter Agreement, and any resulting
termination shall terminate the Franchise in its entirety.
4. In consideration of the rights granted by this Franchise,
including, but not limited to, the right to utilize the actual and
potential drawing power of a McDonald's restaurant, you agree to
make the following cash payments to McDonald's:
(a) An initial fee of $~ payable upon the
execution of this Franchise Letter Aareement. This
initial fee shall be and hereby is deemed to be earned at
such time as you have executed copies of the License and
Lease.
(b) A non-interest bearing deposit of ~as
security for your faithful performance of the terms of
this Franchise Letter Agreement (including all provisions
of the License and Lease), has been waived. However,
McDonald's hereby reserves the right to require a
securi ty deposit as provided for in Article 3.07 of the
Lease as a condition to the Landlord's consent to any
transfer of this Franchise.
(c) During the term of this Franchise, the following
monthly payments shall become due as more specifically
set forth in the License and Lease and shall be paid to
McDonald's:
(1) a monthly service fee payment of _ of
monthly gross sales; and
(2) a monthly rental payment equal to the basic
rent amount, plus the percentage of monthly gross
sales in excess of the monthly gross sales amount,
as outlined below:
Basic Rent:
08/02/91
through
08/01/11
$
~
$
Years:
Percentage
Rem: :
Monthly
Gross Sales:
-2-
,~
~
.
.- .
.-:
^
~.
(d) All real estate taxes and special and general
assessments which may be levied or assessed upon the
Restaurant and any sales, rent, excise, gross receipts
tax or any other tax regardless of designation which is
levied or assessed against the rental of the Restaurant.
(e) All other charges imposed upon McDonald's under the
terms of any lease it has for the property.
5. You hereby acknowledge that you have read and understand
all obligations being undertaken in this Franchise Letter Agree-
ment, including, but not limited to, the fact that you shall be and
hereby are responsible for the cost. i!JiIfl'''~I1r 'f'ollowing items by
payments by you to third parties during the term of the Franchise
as more fully set forth in the License and Lease.
(a) The purchase of foodstuffs and supplies which meet
McDonald's specifications and quality standards.
.'......Jv.,.__.'"q'~
(b) The expenditure for advertising and promotion during
each calendar year of a minimum amount equal to ~ of
gross sales of the Restaurant.
(c) The maintenance of the Restaurant premises and its
equipment and furnishings in good repair.
(d) The payment of all charges for gas, electricity,
water or other utilities, and sewer charges, if
applicable.
(e) The payment for the insurance coverages required
under the Franchise.
. '....;..fi.
6. This Franchise is offered to: Murray Levine,
Bernard W. Levine and Kenneth Levine
personally, and to no others, and may not be accepted by any other
person or corporation, or transferred by assignment, will or by
operation of law. Following acceptance, the Franchise may be
assigned only in accordance with the procedures and forms pre-
scribed by McDonald's and only to a corporation which is wholly and
exclusively owned by you. No other individual or corporation shall
acquire any interest, whether direct or indirect, hereunder,
whether by stock ownership or otherwise, without McDonald's prior
written consent.
,
7. It is understood and agreed that neither McDonald's nor
anyone acting on behalf of McDenald's'nas made any representations,
inducements, promises, or agreements, orally or otherwise, res-
pecting the subject matter of this Franchise Letter Agreement which
is not embodied herein or set fortt in the Uniform Franchise
-3-
. 1
II
-~-"~
.
-
':
.,.
r;.
. "I
I
I
I
I
-
,~
Offering Circular for Prospective Franchisees, referred to in
paragraph 10 hereof, and you agree that the terms of the Franchise
Letter Agreement shall not be modified or amended in any way,
except by a written document which is executed by you and
McDonald's and which is specifically identified as an amendment
hereto.
Murray Levine, Bernard W. are
8. Levine and Kenneth Levine ~ designated to personally
devote full time and best efforts to the operation of the
Restaurant.
9. It is also understood and agreed that no future franchise
or offers of franchises for additional McDonald's restaurants,
other than the Restaurant, have been promised to you and that any
such offer shall be in writing, executed by McDonald's and speci-
fically identified as a Franchise Letter Agreement or Rewrite
Commitment Letter.
10. In accordance with various state and federal laws, you
must have received the Uniform Franchise Offering Circular for
Prospective Franchisees, together with various attachments thereto,
("UFOC") ten (10) business days before you sign any Franchise
documents or pay anything to McDonald's. You hereby acknowledge
receipt of the UFoe delivered to you on July 8, 1991
in accordance with such laws.
In addition, under the Federal Trade Commission Trade Regulation
Rule on Franchising and in accordance with various state statutes
you must have received all Franchise documents five (2-.)
business days before you sign them or pay anything to McDonald's.
You hereby acknowledge receipt of such documents delivered to you
in accordance with such laws.
11. If you intend to accept this Franchise Letter Agreement
on the terms and conditions described above, please evidence your
acceptance after you have held the Franchise documents and UFOe for
the prescribed time periods by signing in the space indicated at
the bottom of this Franchise Letter Agreement and return it with
the License and Lease to the undersigned together with the payment
due under paragraph 4 hereof.
If you intend to reject this Franchise Letter Agreement, please
evidence your rejection after the prescribed time periods by
signing in the space indicated and return it with the License and
Lease to the undersigned.
12. This Franchise Letter Agreement, the License and Lease
together with your payment must be. received by an authorized
representative of McDonald's no later than August 2, 1991
If the prescribed holding time periods have not then expired, this
-4-
II
~.
~"
-~- ~
.
,.... ."":1 r:
.
I'
.,
deadline is hereby extended to the expiration of the prescribed
time periods. Your acceptance of this Franchise Letter Agreement
is specifically conditioned upon and subject to your executing and
returning to McDonald's this Franchise Letter Agreement, the
License and Lease and your payment in the manner and within the
time period set forth herein.
13. Do not sign any Franchise documents or make any payment
to McDonald's before expiration of the prescribed time periods.
For purposes of determining the time periods business days are
Monday through Friday excluding holidays.
If this Franchise Letter Agreement, the License and Lease and your
payment are not received as herein provided, it shall constitute a
rejection of the Franchise, in which case this Franchise Letter
Agreement shall be null and void, and the parties shall have no
rights, obligations or liabilities thereunder.
Very truly yours,
McDONALD'S CORPORATioN, d/b/a
Delawar~cDOna1dl! porporation
By:E~.
Q-Y u ~. Stac owiak
AS ANT VICE PH S DEN
THE FOREGOING FRANCHISE LETTER AGREEMENT IS ACCEPTED AND
CONSTITU:; ;~~IN~I~AGRrENT WIT~HE UNDERSIGNO
i- ~:;-;;91 ' \~LU\.30.-c / 8/1/91
Murra I Levine Date Bernard W. LevJ.ne Date
1/ 8/1/91
Kenn th Levine Date
THE FOREGOING FRANCHISE LETTER AGREEMENT IS REJECTED AND ALL
DOCUMENTS ENCLOSED HEREIN WILL BE RETURNED WITH THIS AGREEMENT.
Date
Date
-5-
II
.
.
~"
'k~ ,
.,,-
.
'.
.
ASSIGNMENT AND CONSENT TO ASSIGNMENT
OF FRANCmSE TO A CORPORATION
Parties:
McDonaldls Corporation, d/b/a Delaware
McDonald's Corporation
("McDonald's)
Bernard W. Levine
(IlAssignor");
KENMAR Enterprises. Inc.
a Pennsylvania Corporation;
(" Assignee")
and those shareholders listed on Exhibit A attached hereto and hereby made a part
hereof(collectively referred to as IIShareholders")
Date: December 1, 1994
WHEREAS, McDonald's or its predecessors granted a franchise to Assignor, including a
License Agreement or Franchise Agreement dated [See Exhibit B], (IILicense") and an Operator's
Lease dated [See Exhibit B], ("Lease"), for the purpose of operating a McDonald's restaurant
located at [See Exhibit B] ("Restaurant");
WHEREAS, Assignor desires to transfer the rights in the franchise, including the License
and Lease, (I1Franchisell) to the Assignee; and
WHEREAS, the parties acknowledge this consent is necessary to insure the ability of
McDonald's to have the type of operators who will operate the Restaurant business consistent
with McDonald's image in the specific community and in the nation as a whole of having a
wholesome atmosphere attractive to children and families.
NOW, THEREFORE, to induce McDonald's to execute this Assignment and Consent to
Assignment of Franchise to a Corporation (Assignment"), and in consideration of the premises,
promises, covenants, warranties and representations herein contained, the parties agree as follows:
1. Assignor, in consideration of$10.00 and other good and valuable consideration,
hereby assigns, transfers and sets over to Assignee all the right, title and interest of Assignor in
and to the Franchise, subject to the tel1lls and conditions of the Franchise,
2.
The effective date of the Assignment shall be August 1, 1994.
3. Assignee hereby covenants and agrees to pay all fees and will perfol1ll all the terms
and conditions of the Franchise.
4. Assignor is in no way discharged from personal liability t~ McDonald's by tlus
Assignment and Assignor specifically agrees to remain personally liable for the full and faithful
performance of the agreements and covenants of the Franchise.
5. Assignor, Assignee and Shareholders, jointly and severally, agree, represent and
warrant that they shall not make or permit any direct or indirect subsequent assignment or
hypothecation of the Franchise, whether voluntarily or by operation oflaw, without the prior
written consent of McDonald's given in accordance with the Franchise and this Assignment.
6. In addition to the above covenants, Assignor and Assignee agree that if any trusts
are shareholders of shares of stock of Assignee that:
IWLEV.DOC (12/09/94)
-
, - ~
. ;
.
.
(a) The beneficial interests in said trusts shall not be assigned without the prior
written consent of McDonald's and shall be in accordance with the tenns of this Assignment and
the License.
(b) Assignor and Assignee warrant that the Trust Agreement supplied to
McDonald'. is a true and correct copy of the Trust Agreement as it i. presently in force. Assignor
and Assignee agree' not to make any amendments to the Trust Agreement without first giving
McDonald's an opportunity to review and approve same.
7. Since the transfer oran interest in the Assignee will in substance constitute an
assigrunent ofthe Franchise, which Assignor and Assignee have agreed not to transfer except in
accordance with certain restrictions, Assignor, Assignee and each Shareholder, jointly and
severaUy, further represent and warrant that: (i) they are the only persons andlor entities with
equity interests in Assignee; (ii) the extent of such equity interests are as set forth on Exhibit A
attached hereto, and this equity ownership is applicable to all McDonald's franchises previously
assigned to Assign~e; (ill) there are no obligations or intentions to issue additional equity interests
in Assignee; and (iv) the only persons having a beneficial interest in any trust shareholder are as
listed in Exhibit A attached hereto. Assignee and each Shareholder, jointly and severally, agree
they shall not make or pennit, directly or indirectly, the creation of new or additional equity
interests in Assignee or make or permit any subsequent assignment or transfer thereof, or of any
issued and outstantling equity interests either voluntarily or by operation of law, including, but not
limited to: (a) transfers to successor trustees whether or not such transfer may already be
provided for in any Trust Agreement under which any trustee shareholder derives its authority;
and (b) any hypothecation or other encumbrance of such equity interest without the written
consent of Me Do rial d's first had and obtained in accordance with the provisions of the Franchise
and this Assigrunent. Pennanent incapacity of any Shareholder shall be deemed to be a transfer by
operation oflaw for purposes of this Assignment. As used herein the tenn "equity interest(s)"
shall include direct or indirect interests in the equity of the Assignee ot the business risk of the
Restaurant, including, but not limited to, interests allegedly denominated as debt but which in
substance encompass the type of risk-taking interest described herein or any interest in the profits
of the Restaurant.
!flhe equity ownership set forth on Exhibit A reflects a change in the equity
ownership of Assignee previously communicated to McDonald's, Assignee and Assignor hereby
authorize McDonald's to add to Exhibit A a listing of all franchises owned by Assignee. Assignor
and Assignee further acknowledge and agree that the equity ownership as set forth on Exhibit A
shall be applicable to aU restaurants listed on the Assignment and on Exhibit A, and shall be
effective without ilny further action by the parties.
. 8. McDonald's hereby consents to the assignment of the Franchise to Assignee as
required by tne Franchise upon the following conditions:
(a) McDonald's has been induced to execute this Asfignment by the
agreements, representations and warranties executed and undertaken by Assignor, Assignee and
Shareholders as set forth herein.
(b) The granting of this consent is in no way either an approval by McDonald's
of the corporate charter or any other documents pertaining to Assignee and insofar as the terms of
same may conflict with or contradict the tenus of this Assigrunent said tenns are expressly
disclaimed.
.
(c) Assignor and/or Assignee shall legend all issued and outstanding shares of
stock of Assignee and future issues of shares of stock of Assignee with the following legend:
-2-
.
.
, ,
.
.
This stock may not be pledged, sold, assigned or otherwise transferred, in whole or
in pan, voluntarily or by operation oflaw, without the prior written consent of
McDonald's Corporation. Any and all transfers are also subject to the tenns of the
Franchise, including the License Agreement or Franchise Agreement and
Operators Lease, or other applicable agreements, for each McDonald's restaurant
operated by KENMAR Enterprises, Inc.
Assignor and/or Assignee shali send to McDonald's, upon request, a copy of all
outstanding certificates of stock of Assignee with the above legend typed on such certificates.
(d) The granting of this consent to a trust shareholder is nota consent to any
proposed future transfers of shares of stock of Assignee to beneficiaries upon the attainment ofa
certain age or other condition. Any and all future transfers or vesting of shares of stock of
Assignee are subject to the tenns nf paragraph 9 below.
(e) The granting of this consent is in no way an approval of any terms ofthe
Trust Agreement and insofar as said tenns may" conflict with or contradict the tenns of tIllS
Assignment, they are expressly disclaimed.
9. The parties agree that in detennining whether to grant or to withhold consent to
the transfer (whether voluntary or by operation of law) of an interest in Assignee or the Franchise,
at any future date, McDonald's shall consider of each prospective transferee, by way of illustration
and not limitation, the following: (i) work experience and aptitude; (ii) financial background; (Iii)
character; (iv) ability to personally devote full time and best efforts to managing the Restaurant;
(v) residence in the locality of the Restaurant; (vi) equity interest in the Restaurant; (vii)
conflicting interests; (viii) whether or not, in McDonald's sole detennination, the transferee
intends to be active in the operations of the Restaurant; and (be) such other criteria and conditions
as McDonald's shall then apply in the case of an application for a new franchise to operate a
McDonald's restaurant. Upon request to transfer the Franchise or an interest in Assignee,
McDonald's consent to such transfer shall also be conditioned each upon such transferee's
execution oran agreement by which he personally assumes full and unconditional liability for and
agrees to perfonn from the date of such transfer all obligations, covenants and agreements
contained in this Assignment to the same extent as if he had been an original party to this
Assignment.
10. Granting consent to this Assigrunent does not constitute approval of any
Shareholder as an approved owner/operator. However, Assignee and each Shareholder hereby
covenant and agree to abide by and honor. as if Assignee and each Shareholder were a signatory
thereto, those provisions of the License pertaining to the maintenance and protection ofthe
McDonald's System, including, but not limited to, those provisions imposing duties of
confidentiality and regulating involvement in other or similar restaurant businesses according to
the tenns of the License. Assignee and each Shareholder agree that a breach of this covenant
shall constitute a breach of the License and entitle McDonald's to enforce all remedies available to
it, including, but not limited to, the tennination of the License. i
11. The parties' respective successors, assigns, heirs and personal representatives shaU
be bound by and receive the benefits of this Assigrunent. All obligations, agreements,
representations and warranties made by more than one party herein shall be joint and several
whether or not so stipulated in the relevant paragraphherein.
12. Assignor, Assignee and Shareholders agree that McDonald', at any time during
nonnal business hours may examine, review and copy any and all of each of their records, books,
financial records, tax returns or other documents for the purpose of insuring compliance with the
Franchise and this Assigrunent.
-3.
II
.
.
,
.
.
13. Assignor, Assignee and each Shareholder agree that upon breach of the conditions,
representations, agreements or warranties contained herein, they and each of them shall be
subject, among all other remedies available by law or hereunder, to all relief and remedies granted
to McDonald's by the Franchise.
14. Assignor represents and warrants that Assignor has notified any and all of
Assigno~s lienholdersllenders of this Assigrunent.
15. All tenus and conditions of the Franchise remain in full force and effect, including,
but not limited to, the requirement imposed on Bernard W. Levine to personally devote full time
and best efforts to the operation of the Restaurant business.
IN WITNESS WHEREOF, the parties set their hands and seals effective the date set forth
above.
McDONALD'S CORPORATION, d/b/a
DELAWARE McDONALD'S ( /
CORPORATI ~7
By:
ASSIGNOR:
~
1('
\
'..... - ). (P
Bernard W. Levine
ASSIGNEE: KENMAREnterprises, Inc.
v~J~ pJ~~
SHAREHOLDERS:
").,,
). '. (.
Bernard W. Levine
( ,\
.
-4-
~ -,~ --,~~.
-. "~, -,~-~.'"
" , "--~'O _ , , 'e" " ~
-," <,' -'-' -' ~-'~
CERTIFICATE OF SERVICE
. .~ p '/JI;A/1A (J.
AND NOW, this 5 day Of~r-\-{/"'-'V-{/J... , 2001, I, Coleen M.
Polek, of the law firm of Thomas, Thomas & Hafer, hereby certify that I sent a true
and correct copy of the foregoing document by placing a copy of the same in the
United States Mail, postage prepaid, to the following:
Harry W. Fenton, Esquire
Reilly, Wolfson, Sheffey,
Schrum & Lundberg
1601 Cornwall Road
Lebanon, PA 17042
rJWx
Coleen M. Polek
-
II
",--.
1<,"
.
"lIliIIIIilIiiI~-~
r . . ~ ""~... _ N ~,'
""ihiII~~~-'
.w.._..
U;llj;,j~.~~ll'.t'-,
-~- -~ . ~- '^ .
, ~=
-
--",'",.,' ...,
,
,-"
. .
0 c' ~.?
c .,
:.:;;- UJ __oj
-ClUJ 1""'1 ~
D;fq'{ -U ,.-
Le- I ,
-r'; ,:..)
(fJ .~ (rt (:~)
-<:z: --, c)
~o "'.-"",
v .".L'-n
:pr. :1i: 0--
7...) Z~J
--, ' ~ C:,lfl
$e: ---1
z :.v ~
::;;! N -<
Iii'