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Suppose Sam Jones bought a Dunkin’ Donuts, Inc., franchise. Shortly thereafter, Dunkin’ Donuts began offering breakfast sandwiches with bacon, ham, or sausage through its franchises. Mr. Jones refused to sell these items at his store on the ground that his religion forbade the handling of pork. He bought a second franchise, at which he also refused to sell pork products. The next year, however, Jones began selling meatless sandwiches at both locations. A few years later, Jones attempted to open a third franchise but Dunkin’ Donuts refused to approve the new location and added that it would not renew any of his franchise agreements because he did not carry the full sandwich line. Jones filed suit in a federal district court against Dunkin’ Donuts and others. What result? Do you think that Dunkin Donuts acted in good faith in its franchise relationship with Jones?

Operation Management, Management Studies

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