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|Issues to Consider for Prospective Franchise Owners|
Vincent T. Cieslik; Capehart & Scatchard, P.A.;
May 14, 2014, previously published on May 2, 2014Our firm and attorneys have represented franchisees in litigation with their franchisors for years. The franchise style of business, from the franchisor’s point of view, is all about standardization in contracts, services, and products. The franchisor wants and needs uniformity across the...
|Not Loving It: Ontario Human Rights Tribunal Denies Attempt by Fast Food Franchisor to Extricate Itself from Complaint|
Carly Cohen; Cassels Brock & Blackwell LLP;
May 12, 2014, previously published on May 2, 2014In Lindsey v. McDonald’s Restaurants of Canada Ltd., the Human Rights Tribunal of Ontario denied McDonald’s preliminary request that it be removed as a respondent to an application alleging discrimination by a former employee.
|Ontario Court Overturns Wrongful Termination of Franchise Agreement by Franchisor|
Colin Pendrith; Cassels Brock & Blackwell LLP;
May 12, 2014, previously published on May 2, 2014In the recent case of ANC Business Solutions Inc. v. Virtualink Canada Ltd. in the Ontario Superior Court of Justice, Justice Perell considered whether Virtualink, the franchisor of a franchise system offering “executive office suites,” had unlawfully terminated ANC, one of its...
|Claim against Former Franchisee for Soliciting Customer Lists “Turfed” by BC Court|
Christopher Horkins; Cassels Brock & Blackwell LLP;
May 12, 2014, previously published on May 2, 2014In 0867007 BC Ltd v. Destinations International, the Provincial Court of British Columbia dismissed the claims of a franchised business purchaser seeking to rely on purported non-competition and non-solicitation provisions in its claim against the former franchisee that sold the business. Although...
|Summary Judgment: The New Tool in Franchise Litigation?|
Carly Cohen, Geoffrey B. Shaw; Cassels Brock & Blackwell LLP;
May 12, 2014, previously published on May 2, 2014On the coattails of the recent Supreme Court of Canada decision in Hryniak permitting the broader use of summary judgment motions, the franchisor of Caffé Demetre restaurants has won its motion for summary judgment against a former franchisee.
|Failure Is Not An Option|
Tillman Y. Coffey; Fisher & Phillips LLP;
May 8, 2014, previously published on May 5, 2014When it comes to a dealership’s legal liability for employment-related problems, the basis of the liability generally falls into two categories - actions the dealership took and those it failed to take. When it comes to big dollar jury awards and settlements, a dealership’s failure to...
|Is Your Dealership Taking Advantage Of Employment Arbitration?|
Matthew R. Simpson; Fisher & Phillips LLP;
May 8, 2014, previously published on May 5, 2014Many dealerships try to reduce the risk of high-dollar litigation and runaway jury awards by invoking mandatory arbitration for their applicants and employees. Employees who think that they were paid or treated unfairly are then required to bring the matter to an arbitrator rather than file a...
|Global Franchise News: Preventing Competition by Former Franchisees|
Dentons Canada LLP;
May 8, 2014, previously published on April 30, 2014Most franchise agreements prevent the franchisee from competing with the franchisor for a certain period of time after termination. In Europe this is typically one year. In addition the franchisee can be prevented from using the trade mark of the franchisor for as long as the trade mark remains the...
|Friendly Reminder for LLCs and LPs: Delaware Is Looking for Your Dollars|
Foley Lardner LLP;
April 30, 2014, previously published on April 25, 2014It’s that time again: time to pull out your checkbooks and send Delaware your dollars. As I previously wrote, while corporations had an annual franchise tax payment due in March, it’s time for LLCs and LPs to pony up. It’s the cost of housing your business in Delaware, but...
|Ontario Court Finds that Material Omission in Franchise Disclosure Document Provides Only 60-Day Rescission Right|
Sarit E. Batner, Helen Fotinos, Brooke MacKenzie, Adam Ship; McCarthy Tétrault LLP;
April 25, 2014, previously published on April 23, 2014In a significant recent decision, the Ontario Superior Court of Justice granted partial summary judgment in Caffé Demetre v. 2249027 Ontario Inc. the first franchise rescission claim to be decided since the new summary judgment test was set down by the Supreme Court of Canada in Hryniak v....