Center for Entrepreneurial Studies,
Babson College © 1991

ISBN 0-324-00173-8

Case Teaching Package
A case teaching package, written by Bill Bygrave, is available for this case. It includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into your course.

Length
This case is 8 pages in length and its case teaching package is 2 pages.

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 centers. He is now concerned about his relationship with Super Lube because Huston Oil, an industry leader, has acquired a 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 of the company: Massachusetts
• Years spanned by the case: 1989 through 1991
• Industry segment: Quick oil change and lubrication for autos
• Stage of the company: Growth to maturity
• Age of the entrepreneurs: 30s