South Gauteng High Court in Johannesburg has on Friday granted MSA Devco Pty Ltd exclusive authority to operate and manage four McDonald’s restaurants without external interference.
This ruling follows a dispute over transfer of franchise rights after the passing of Frans Mmakola, who had entered into four franchise agreements with McDonald.
According to court judgement, disagreement arose when respondents – Qondisa Barbara Mmakola, identified in this case as the executor of deceased estate and widow of Frans Kgwadi Mmakola, along with Mahlasedi Avril Mmakola and Funeka Philda Mmakola, both daughters, unequivocally have vested interest in their father’s estate.
The trio believed franchise rights should be transferred to them, conflicting with McDonald’s stance.
The parties then turned to arbitration, as outlined in franchise agreement, which states that any arbitration award is final and binding .
Judge Mudau’s ruling upholds arbitration award, establishing MSA Devco Pty Ltd as sole operator of the franchise locations in Lephalale, Groblersdal, Thabazimbi, and Kwaggafontein.
This judgment adheres to clause 16.1.3 of the Arbitration Act and arises from an application submitted by Maenetje SC to enforce the arbitration decision.
As a result, MSA Devco Pty Ltd can now operate McDonald’s restaurants independently, free from involvement or oversight from respondents.
This victory marks significant advancement for the company in its quest to uphold complete authority over operation of McDonald’s establishments.
The ruling highlights importance of arbitration in resolving disputes and enforceability of arbitration awards in court.
MSA Devco Pty Ltd’s triumph sets precedent for the company’s future franchise operations, ensuring its ability to manage and oversee its locations efficiently.
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