In June, a Quebec court delivered an unprecedented victory to
franchisees of the Dunkin' Donuts brand. The court said that
the Dunkin' Donuts franchisor had not done enough to support
the brand in Quebec, particularly in light of the growing "Tim
Hortons phenomenon" in that province - leading to financial
harm to its franchisees. The judge awarded damages of a cool $16.4
million dollars against the franchisor.
The facts of the court case were specific and complex.
Interested readers will find an enlightening explanation of the key
issues in an article by Ned Levitt and Bruce Schaeffer in the
September 2012 issue of CCH Business Franchise Guide.
Whatever the future impact of that case on franchise law, it put a
spotlight on the expectations and needs of franchisees in banking
their career's future on a brand.
