Tuesday, January 4, 2005
The Goulburn-Mulwaree City Council sold a parcel of land to a McDonald’s hamburger franchise. It promised, as part of the deal, that no part of the larger lot that included the parcel would be used for a fast-food restaurant. But it now wants to permit a Red Rooster chicken franchise to build on the lot. Red Rooster is Australia's largest BBQ chicken franchise.
McDonald’s says it’s a clear breach of contract. Lawyers for the council say that the town’s planning law supersedes any real estate covenants. But the council is holding off on a decision for now, until it gets a clear legal opinion.