Court Finds that Franchisee Took Commercially Reasonable Steps to Dissociate from Franchisor

  • February 20, 2021
  • Steven Goldman and Alana Spira

Tiny Hoppers Corp., Nasim Management Solutions Inc., Tiny Hoppers Canada Inc., Brigida Aversa, Theresa Bertuzzi, and Rashid Nasim (the “Franchisor or “Tiny Hoppers”) brought a motion for summary judgment seeking an order that 2402074 Ontario Inc., 2359251 Ontario Inc., 2370471 Ontario Inc., 2409133 Ontario Inc., Nahid Almashni, and Jamal Mansour Mayali (collectively, the “Franchisees” ) repay $500,000 paid pursuant to Minutes of Settlement. The Franchisor also claimed that the Franchisees made defamatory remarks and sought damages on this basis.

The Franchisees brought a cross-motion seeking an order dismissing the Franchisor’s claim and requesting an order that the Franchisor pay the balance of $224,000 still owing under the Minutes of Settlement.  

The motion was heard by Justice R. Smith on February 25, 2020 and the Reasons for Decision released April 28, 2020.