Reference no: EM133556425

Question

In early 2020, Tom wanted to purchase a Best Burger franchise. Tom began negotiated exclusively with Best Burger's representative, Herb. After reviewing Tom's assets and business plan, Herb assured Tom that Tom would easily qualify for a Best Burger franchise and that quick approval was a mere formality. Tom then asked, "so we have a deal?" Herb responded, "only the corporate office can agree to a franchise contract, but I promise you that corporate office won't turn you down." Herb suggested that Tom start hiring employees and start purchasing equipment for the Best Burger franchise Herb guaranteed would be Tom's. At Herb's suggestion, Tom did all of this at a cost of $50,000. To Herb and Tom's amazement, Best Burger declined Tom's franchise offer based on a business downturn brought about by Covid-19. What is Tom's best legal theory of recovery against Best Burger? What do you think will happen if Tom files a lawsuit against Best Burger, and why do you think that will be what happens?