Klinke v. Famous Recipe Fried Chicken, Inc.

Plaintiffs appeal from a summary judgment rendered in favor of defendant Famous Recipe Fried Chicken, Inc. (Famous). We reverse the summary judgment and remand for further proceedings.

When viewed most favorably to plaintiff Paul Klinke, the nonmoving party, the summary judgment evidence and the reasonable inferences therefrom present the following picture. In 1974, Famous issued to Klinke a 10-year franchise to operate a Famous Recipe Restaurant in Yuba City, California. When negotiations began Famous was not authorized to issue franchises in that state. Accordingly, Famous agreed to apply…