Copeland contracted with McDonald's Systems, Inc., for a franchise. Copeland was granted the fast-food outlet franchise for Omaha.
McDonald's also gave Copeland first refusal rights for any plans to open other franchise outlets in Omaha. Copeland exercised the right several times, opening several additional outlets. He then sold the franchise to Schupack and assigned to Schupack the right to open new McDonald's outlets in Omaha.
When Schupack tried to exercise the first refusal right, McDonald's objected, claiming its relationship with Copeland developed through a special confidence in Copeland's ability to manage and promote its new franchise outlets. Was McDonald's correct? Explain.
Schupack v. McDonald's Systems, Inc., 264 N.W.2d 827 (NE)