Kristine bought a Rocky Mountain Chocolate Factory franchise. Her franchise agreement required her to purchase a cash register that cost $3,000, with an annual maintenance fee of $773. The agreement also provided that Rocky Mountain could change to a more expensive system. Within a few months after signing the agreement, Kristine learned she would have to buy a new cash register that cost $20,000, with annual maintenance fees of $2,000. Does she have to buy this new cash register? Did Rocky Mountain act in bad faith?

Question

Sanford

Business

28 May, 19:53

Kristine bought a Rocky Mountain Chocolate Factory franchise. Her franchise agreement required her to purchase a cash register that cost $3,000, with an annual maintenance fee of $773. The agreement also provided that Rocky Mountain could change to a more expensive system. Within a few months after signing the agreement, Kristine learned she would have to buy a new cash register that cost $20,000, with annual maintenance fees of $2,000. Does she have to buy this new cash register? Did Rocky Mountain act in bad faith?

+5

Answers (1)

Know the Answer?

Lane Horne · Answer 1

The correct answer is : Yes, she had to buy it.

Explanation:

The agreement allowed Rocky Mountain to change the systems. It cannot be considered a bad faith decision. When evasion of contractual duties is presented or involved it can be called bad faith. Remember that one of the biggest disadvantages is the costs because the support and training provided fees need to be paid.