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Case
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Reference no. 802-032-1
Subject category: Entrepreneurship
Published by: Babson College
Originally published in: 2002
Version: 10.07.97
Length: 8 pages
Data source: Field research

Abstract

QLFC is a franchisee of Super Lube, the number one franchisor in the quick lube and oil-change business. In ten years, Frank Herget has built QLFC into Super Lube's biggest franchisee with 47 service centres. He is now concerned about his relationship with Super Lube because Huston Oil, an industry leader, has acquired an 80% interest in Super Lube and subsequently has replaced its top management. He believes there is a basic conflict between QLFC's objectives as a franchisee and Huston's objectives as both QLFC's franchisor and the exclusive supplier of QLFC's oils and lubrication products. After an unsatisfactory meeting with Huston's executives, Herget's company sues Huston, which denies the charges and files a countersuit. The case deals with Herget's negotations with Huston.
Location:
Other setting(s):
1989-1991

About

Abstract

QLFC is a franchisee of Super Lube, the number one franchisor in the quick lube and oil-change business. In ten years, Frank Herget has built QLFC into Super Lube's biggest franchisee with 47 service centres. He is now concerned about his relationship with Super Lube because Huston Oil, an industry leader, has acquired an 80% interest in Super Lube and subsequently has replaced its top management. He believes there is a basic conflict between QLFC's objectives as a franchisee and Huston's objectives as both QLFC's franchisor and the exclusive supplier of QLFC's oils and lubrication products. After an unsatisfactory meeting with Huston's executives, Herget's company sues Huston, which denies the charges and files a countersuit. The case deals with Herget's negotations with Huston.

Settings

Location:
Other setting(s):
1989-1991

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