The plaintiffs, Tim Hortons franchisees, brought a proposed class action against the franchisor alleging breach of contract, breach of the duty of good faith and fair dealing, unjust enrichment, and breaches of the Competition Act.
The claims centered on the franchisor's requirement that franchisees purchase par-baked donuts and Lunch Menu ingredients at allegedly commercially unreasonable prices.
The franchisor moved for summary judgment.
The court granted summary judgment dismissing all claims, finding that the franchisor had the contractual right to require the purchases and set the prices, and that there was no breach of the duty of good faith or the Competition Act.
The certification motion was therefore moot, though the court indicated it would have certified certain common issues had the claims survived.
