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ARTICLE · 04 MARCH 2016

Franchise Agreements: Beware Of Misrepresentations

McCarthy Tétrault
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On January 18, 2016, the Quebec Court of Appeal rendered an interesting judgment as to the consequences of a contract which precluded future claims, by a franchisee against its franchisor on the basis of false representations.

CanadaCorporate/Commercial Law
Martin Thiboutot
Martin Thiboutot
Sandra Fournier
Sandra Fournier
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On January 18, 2016, the Quebec Court of Appeal rendered an interesting judgment as to the consequences of a contract which precluded future claims, by a franchisee against its franchisor on the basis of false representations.

In Presse Café Franchise Restaurants inc. c. 9192-6287 Québec Inc. et Pierre Demarais, Presse Café Franchise Restaurants Inc. ("Presse Café"), appealed the judgment requiring it to indemnify Mr. Pierre Desmarais and 9192-6287 Québec Inc. (together the "Franchisee"), a corporation formed by Mr. Desmarais for purposes of operating a Presse Café premium franchise.

Presse Café operates a network of franchises well known in Québec for its bistros and cafes. In March 2008, Mr. Desmarais made an offer on a business operated under the trade name Presse Café, located at 1801 Maisonneuve Street, Montréal (the "1801"), that was subject to: a) Presse Café approving Mr. Desmarais' franchise application; and b) Mr. Desmarais' review and approval of

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