Franchisee Says McDonald's Caused Her Money Woes <b></b>

Jul 5, 2002

New York--Sandra Darling, formerly operator of four Southern California McDonald's restaurants, is blaming the company for her current financial woes. Through her attorney, Nick P. Reckas, Darling has filed conspiracy-to-defraud and breach-of-covenant charges against the fast-food company in California Superior Court. Based on testimony from former McDonald's employees, Reckas alleges McDonald's wanted Darling out of the system and would not subordinate a loan for her. The company also sent an accountant to Darling, who allegedly failed to do her books properly or file timely reports with the franchisor.

McDonald's would not comment on the details of the case but did say it disagreed with Darling's conclusions. -Wall Street Journal

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