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Author: Jeffrey Nguyen, Student-at-Law, Law Works P.C. Editorial Committee: Law Works P.C. Editor: Ben Hanuka On September 2, 2016, the Ontario Superior Court of Justice granted summary judgment in Arnold Hennessy Holdings v Flapperless, 2016 ONSC 6341, for the payment of unpaid royalties under a licence agreement. The case analyzed important issues about defenses that franchisees tend to raise when defending claims for unpaid royalties.
Introduction A franchisor has a right to preserve the value of the franchised business, even in a rescission case.
When a franchisees is in financial distress and looks to either close shop or otherwise get out of the franchised business, a franchisor often...
The post termination covenants in the franchise agreement are key factors in a franchisor’s overall termination analysis.