The plaintiff franchisor brought a motion for summary judgment against the defendant franchisee for unpaid royalties, advertising fees, and rent.
The defendants did not dispute the amounts owed but argued they were entitled to equitable set-off due to the franchisor's alleged breaches of the franchise agreement and the duty of fair dealing under the Arthur Wishart Act.
The court granted summary judgment, finding the case suitable for summary determination and concluding that the defendants' complaints did not meet the test for equitable set-off.
The court also declined to stay the execution of the judgment pending the defendants' counterclaim.
