$50,000 franchisee award: mental distress caused by the franchisor’s bad faith dealings

November 19, 2010

A recent Ontario appeal court decision is very important for every Canadian franchisee.

On September 16, 2010 the Ontario Appeal Court confirmed a $50,000 award for mental distress.

First time ever. Read it here:

Suddenly the economics of pleading good faith has tipped significantly in franchisees’ favour, not just in Ontario but beyond Canada as well..

Some systems have 50, 100 or 1,000 franchisees.

You do the math of the aggregate value of a group or class action lawsuit.

You still need protection against choosing the wrong attorney but great news this fall.

Kudos: First franchisee call-out on internet:

Jeff Lefler, National Bread Network, October 21, 2010

[full chronology on Blue MauMau]

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After 10 years, the Ontario Wishart Act is getting a little tweaking

November 14, 2010

Bill 102 is important.

But what’s revolutionary is the way the Ontario courts are back-filling the Wishart Act with real umph.

This judge-made or case law is designed to modify franchisor behavior.

A $50,000 appeal award upheld for mental distress in a low-rent coffee joint?

I understand this is the 1st time a breach of good faith and fair dealing provision has triggered $ on its own. And it was accomplished by a non-“franchise bar” attorney in Ottawa, too.

I wonder…

Queen’s Park, Toronto Ontario Canada: Home of the Legislative Assembly of Ontario


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