The franchisor moved for interlocutory injunctive relief to compel a former franchisee to resume operating a pharmacy under its banner, alternatively to deliver up possession of the premises, or to refrain from operating any non-franchised business there, together with relief respecting private label products and intellectual property.
The court held that, in substance, the requested relief was mandatory because it would require the responding parties to unwind an existing arrangement with a new franchisor and take positive steps to resume the prior franchise relationship.
Applying the mandatory injunction standard under the RJR-MacDonald framework as refined by Canadian Broadcasting Corp., the court found no strong prima facie case because the rescission issues under the Arthur Wishart Act raised non-frivolous questions for trial, including whether changes to a loyalty points program were material changes.
The court also found no irreparable harm because lost profits and market effects were measurable from extensive historical sales data, and held that the balance of convenience favoured the responding parties.
The motion was dismissed.
