The Penguin
1. As of the end of the case, outline the ownership rights of each part of the business, including
physical property, intellectual property, recipes, business model, etc. Can you justify
Lisa Ballentine’s decision not to renew the lease?
The case ends with the majority of the Penguin business ownership in Jean Ballentine’s name
and Ballentine Family Investments, LLC. Jean Ballentine owned the physical property,
which includes the lot and the building, and eventually transferred ownership to Ballentine
Family Investments, LLC. The intellectual property was also initially owned by Jean
Ballentine, which includes the name and the logo, and ownership was also eventually
transferred to Ballentine Family Investments, LLC. The business model belongs to King and
Rowe since they completely transformed and developed the successful Penguin restaurant
and bar with their own ideas. When they hired Auten as the restaurant chef, Auten earned
ownership of the Penuin’s recipes.
Lisa’s decision to not renew the lease is hard for me to personally justify because I don’t think it
was fair. Legally, she has the right to make that decision because the Ballentine family owns
the physical and intellectual property of the Penguin. However, King and Rowe developed
the business plan that allowed the Penguin to thrive. Without their business knowledge and
dedication to the restaurant, the Ballentine family would not even have a franchising offer on
the table.
