Donut Wars Part II - Dunkin' Donuts

On June 21, 2012, the Honourable Daniel H. Tingley of the Quebec Superior Court issued a 43 page judgment which ordered Dunkin' Brands Canada Ltd. (the "Franchisor") to pay 21 of its franchisees in Quebec (the "Franchisees") an aggregate sum of almost $16.5 million, plus interest and costs, for having failed "to protect and enhance the Dunkin Donuts brand in Quebec." The decision in Bertico Inc. et al v. Dunkin' Brands Canada Ltd. [Dunkin' Donuts] was a resounding victory for the Franchisees. The outcome in Dunkin' Donuts contrasts sharply with the Fairview Donut Inc. and Brule Foods Ltd. v. The TDL Group Corp. and Tim Hortons Inc. [Tim Hortons] decision, recently examined by this author, where Tim Hortons Inc. obtained summary judgment in the Ontario Superior Court of Justice against efforts by franchisees to certify a class action.