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ARTICLE · 15 MAY 2015

Dunkin' Donuts

The Quebec Court of Appeal's decision in Dunkin' Brands Canada Ltd. v. Bertico et al. is of tremendous importance, as it undertakes an in-depth and thorough examination of the rights and obligations...

CanadaCorporate/Commercial Law
Langlois Lawyers LLP
Langlois Lawyers LLP
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The Quebec Court of Appeal's decision in Dunkin' Brands Canada Ltd. v. Bertico et al.1 is of tremendous importance, as it undertakes an in-depth and thorough examination of the rights and obligations of the parties to a franchise agreement.

The judgment is the culmination of a decade-long court battle that Langlois Kronström Desjardins and Fasken Martineau waged on behalf of 32 Dunkin Donuts franchisees.

The franchisee plaintiffs suffered a steady and progressive deterioration of their operating results during the 1990s, to the point where, without vigorous intervention, their outlets seemed doomed to disappear altogether. They naturally turned to their franchisor for assistance and support. But despite numerous discussions, the franchisees did not receive the assistance and support to which they felt they were entitled from the franchisor. They concluded that Dunkin' Donuts had effectively abandoned them by not performing its contractual obligations, and

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