Is a franchisor liable to a franchisee for breach of contract with the franchisee?
Ontario, Canada
The following excerpt is from Home Instead, Inc. v 244674 Ontario Inc., 2015 ONSC 7630 (CanLII):
As to the franchisor, I agree with Perell J. in Quiznos v. 1450987 Ontario, 2009 CarswellOnt 2280, that where it appears that the franchisees would not be able to satisfy a damages award against them and it appears that their breaches threaten the franchisor’s goodwill, reputation, and implicate its responsibility to maintain the integrity of the chain, an award of damages will not fairly or adequately address those harms.
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