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The Supreme Court refuses leave to appeal Dunkin’ Brands resulting in C$16.4 million in damages for franchisees

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In one of the most important franchising disputes in the past twenty years in Quebec, the Superior Court rendered a first decision in favour of the plaintiffs in 2012, condemning Dunkin’ Brands to pay the plaintiffs $16.4 million dollars in damages for various breaches, including negligence, bad faith, misrepresentations, failure to support and assist, etc. The matter involving 21 Dunkin’ Donuts franchisees was then heard by the Court of Appeal, which also rendered a decision in favour of the franchisees on April 15, 2015, but reduced the quantum of damages awarded. After over 13 years of legal proceedings, on March 17, 2016, the Supreme Court refused franchisor Dunkin’ Brands’ leave to appeal and ruled in favour of the 21 franchisees, thereby confirming the unanimous decision of the Court of Appeal in favour of the franchisees on April 15, 2015. To consult the Supreme Court decision, click here. To consult the decisions of the Court of Appeal, please click here and here. To consult the Superior Court decision, please click here.

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