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Should an Islamic bank be allowed to force a Christian owned US business to comply with Shari'a?

Church's Chicken is owned by Arcapita Inc., the US branch of First Islamic Investment Bank. After First Islamic bought Church's, they prohibited franchisee Beasley Food Ventures from selling pork products at their new location at BWI airport. (Church's franchises that were already selling breakfast were allowed to continue to do so until their contracts came up for renewal) Since breakfast in the South almost invariably involves bacon, ham or sausage, and the restaurants lease required them to open at 5am every day, this meant that they sat there throughout the breakfast period selling next to nothing except coffee.

Largely as a result of this, the restaurant went broke.

So, should a foreign Islamic bank that purchases a US business be allowed to then require the independent owners of that businesses franchises to follow Shari'a law, when that was never contemplated in the original franchise contract?

Richard

Update:

To the people below who couldn't read and understand the post..... I didn't say that Church's, the franchisor, went broke. I said that the Church's franchisee at Baltimore Airport went broke.

Update 2:

Edit... to Samian...

The franchisee's never entered into a contract of any sort with First Islamic. They enterd into a contract with "America's Favorite Chicken, Inc", which was the previous owner of Church's. The franchise agreement - like that for McDonalds or any other chain fast food restaurant - gives the franchisor the authority to set the menu items that the restaurants can sell. The franchisee had no reason to suspect that all of a sudden he would find himself required to sell a Shari'a compliant menu, when he had bought a "Southern Comfort Food" restaurant franchise.

10 Answers

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  • ?
    Lv 7
    1 decade ago
    Favorite Answer

    Depends mostly on where and what country that business is located.

    They should have looked elsewhere for a loan then. After the original contract ran out, then that ownership rule was forced onto the company by the bank.

    I see it didn't take long for Arcapita to sell their investment either.

    Which goes to show you that profits are the bottom line in business and not moral or immoral laws.

  • 1 decade ago

    Well, if they own the restaurant, I guess they have the right to make it follow any plan they choose, even if this makes the business fail.

    Of course, they will suffer the consequences of making a business they own fail. One would think that they'd check out the market conditions before buying a restaurant chain....

    And hey, there are a lot of things besides pork you can eat for breakfast. Pancakes, grits, eggs, waffles, toast, biscuits and gravy [doesn't have to be pork gravy], hash browns, steak, etc. And I assume there's no prohibition against "ham" and "bacon" made from other kinds of meat....

    Somebody wasn't thinking ahead!

    >>> So this means that in the future, as franchisees' contracts come up for renewal, they too will be prohibited from selling pork? Wow!

    It does seem unfair that the franchisee had no option in the matter, and no knowledge of the fact that this would happen.

    I really don't know anything about franchise law, but the Bank may have committed a legal faux pas here. I'm sure that a franchisee does have some rights.

    BTW, this isn't the universal attitude of Muslim business people. I have heard and read of Muslim restaurant owners and managers who consider it their duty [opposite of haram!] to serve appropriate foods to non Muslims, and even to taste the pork products to make sure they are up to standards! So, though they wouldn't eat pork as a normal matter, they must taste it [if their job calls for this] and serve it to customers.

  • 1 decade ago

    This isn't a religious question, this is a legal one.

    The owner of the corporation have the right to make whatever decisions they want.

    As you said, outlets who have not renewed their franchise contracts as yet were still permitted to sell pork products. Therefore, as a condition of the renewed franchise license they will have to comply with the new regulations if they want to remain a franchisee.

    Simple.

  • Church's Chicken went broke??

    But on their website it says there are thousands of active franchises:

    http://www.churchs.com/company-history.html

    I live in Houston and see them everywhere.

    To answer your question, if the bank owns a company, the bank has the right to dictate how that company should be operated.

    The franchisees or executives shouldn't have decided to sell shares, or seek financing from, a bank that has Sharia based restrictions.

    If they sign the contract they're legally obligated to following it. There's an importance to reading the fine print.

  • Anonymous
    1 decade ago

    No, but you should be able to circumvent the company headquarters and buy the pork products more directly from another source.

  • Herbie
    Lv 4
    1 decade ago

    There's two Church's in my town. Care to give a reference?

  • 1 decade ago

    Psh. Please. Last time I went to Church's the employers were mean to me. And the chicken sucked really bad. I just go to Popeye's!

  • 1 decade ago

    Capitalism in action.

  • Nope.

  • Anonymous
    1 decade ago

    why did the chicken cross the road???

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