Sirianni v. Country Style, 2012 ONSC 881 (S.C.J.)

Ontario Court Allows Country Style Franchisee to Rescind Letter Agreement Renewing Franchise Agreement and Sublease


A Country Style franchisee was granted judgment in the amount of $187,730.05 plus pre-judgment interest for rescission damages udner s. 6(6) of the Arthur Wishart (Franchise Disclosure) Act, 2000 for the franchisor's failure to provide a disclosure document in relation to the renewal of the franchisee's franchise agreement and sublease. The franchisee was also awarded damages in the amount of $25,000 for the defendants' breach of their statutory duty of dair dealing under s. 3 of the Arthur Wishart Act. The franchisor had kept critical lease information from the franchisee. The franchisor had agreed with the landlord to a substantially shorted lease renewal term but lead the franchisee to believe that the lease had been renewed for a five year term. The franchisor was also granted summary judgment on the guarantees and was allowed the amount owing ($48,824.74) against the amount of the franchisee's judgment.

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Reference Info:Decision | Canada

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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