Reference no: EM131660449

Question: Franchise Termination. In 1985, Bruce Byrne, with his sons Scott and Gordon, opened Lone Star R.V. Sales, Inc., a motor home dealership in Houston, Texas. In 1994, Lone Star became a franchised dealer for Winnebago Industries, Inc., a manufacturer of recreational vehicles. The parties renewed the franchise in 1995, but during the next year, their relationship began to deteriorate. Lone Star did not maintain a current inventory, its sales did not meet goals agreed to between the parties, and Lone Star disparaged Winnebago products to consumers and otherwise failed to actively promote them. Several times, the Byrnes subjected Winnebago employees to verbal abuse. During one phone conversation, Bruce threatened to throw a certain Winnebago sales manager off Lone Star's lot if he appeared at the dealership. Bruce was physically incapable of carrying out the threat, however. In 1998, Winnebago terminated the franchise, claiming, among many other things, that it was concerned for the safety of its employees. Lone Star filed a protest with the Texas Motor Vehicle Board. Did Winnebago have good cause to terminate Lone Star's franchise? Discuss. [Lone Star R.V. Sales, Inc. v. Motor Vehicle Board of the Texas Department of Transportation, 49 S.W.3d 492 (Tex.App.-Austin, 2001)]