Among other things, the decision in this case did not address the effect of the personal guarantee that the franchisee's individual principals signed, and whether this was done under a condition in
the original franchise agreement, or whether this was a new condition that the franchisor may have imposed at the time of the resale.
Those findings were that no material change occurred in the operation of Pizza Pizza's business between 1996, when the franchisee entered into
the original franchise agreement, and 2001 when it entered into a renewal agreement.
Specifically on the issue of the cost of the required renovation to the restaurant, the trial judge found that the franchisee and its principal were «fully informed» before they entered into
the original franchise agreement about the fact that Pizza Pizza was in the process of renovating its restaurants and that the cost was to be borne by the franchisees.
Not exact matches
New Car Dealers: NHTSA receives from
Original Equipment Manufacturers (OEMs) lists of new car dealers with current
franchise agreements that are updated on an ongoing, periodic basis.
The corporate franchisee had earlier taken over the
franchise agreement from the
original franchisee by way of a resale.
First, in the analysis of whether a franchisor is exempt from providing a
franchise disclosure document in a renewal, the court needs evidence, and it must be conclusive, about the material differences between the
original and then - current
franchise agreements and their factual context.
While the
original judge said that Mincom purposefully chose ambiguous wording in Schedule B of the
franchise agreement, the Court of Appeal ruled that «the ambiguous working in Schedule B was chosen by representatives of the respondent and not by the appellant.