Opinion ID: 777182
Heading Depth: 2
Heading Rank: 2

Heading: The Attempts to Purchase the Franchise

Text: 5 In 1996, Chevron began implementing a business plan that sought to eliminate so-called three-party control over certain franchises. Chevron targeted franchises that were considered long-term strategic locations based on their facilities, sales volume, and other factors. El-Khoury's franchise was such a location. That same year, Chevron approached El-Khoury and proposed that the franchise become a co-branded location, meaning that part of the franchise would become a McDonald's restaurant. El-Khoury ultimately rejected that proposal. 6 Chevron continued to pursue the co-branded location idea. In 1997, Chevron discussed the matter with El-Khoury at a general dealer meeting. El-Khoury remained concerned that the franchise would lose business to McDonald's. In late 1997 or early 1998, Chevron changed its approach and instead offered to purchase the franchise for $400,000. El-Khoury considered the franchise to be worth much more and, therefore, declined Chevron's offer. On December 29, 1997, Chevron sent a letter to McDonald's stating that it had attempted unsuccessfully to buyout the station from the dealer at this site, and as a result is ceasing any further negotiations. 7 However, Chevron continued its efforts to purchase El-Khoury's franchise even after it had decided not to pursue the co-branded facility idea. In late 1998 or early 1999, Chevron's retail marketing manager, Mike Riley, and another employee, Noushad Hyder, tried to persuade El-Khoury to accept the $400,000 offer. Chevron approached El-Khoury's daughter about the sale as late as June of 1999.