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The Dunkin Donuts case

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Franchising law

The Journal les Affaires recently published an article written by Stéphane Rolland in collaboration with, among others, Me François Alepin on the world of franchising. The Article reviews the factual situation of a Quebec Superior Court decision in which it is namely decided that the franchisor has an implicit obligation to insure the protection of his trademarks and therefore of his franchisees. Certainly, the Dunkin Donuts case will set a precedent if the decision is not reversed by the Court of Appeal. On June 21st, 2012 in the Superior Court of Quebec, district of Montreal, with the honourable justice Daniel H. Tingley presiding, the Court rendered a decision in the case of Bertico Inc. et al. (Plaintiff/Franchisees) vs. Dunkin Brands Canada Ltd. (formerly Allied Domecq Retailing International Canada Ltd (ADRIC)) (Defendant/Franchisor) in which the franchisor was condemned to pay just over $ 16 400 000, plus interest and costs, as well as an additional indemnity provided for by law, to the franchisees.

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