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

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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


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