On a summary judgment motion arising from a franchise settlement dispute, the court held that a related corporation that received franchisor rights, powers, and a 50% trademark-holding share interest became subject to the guarantee obligation in minutes of settlement.
Applying the summary judgment framework, the court found no genuine issue requiring a trial on the existence of the guarantee, the timing and character of the transfers, the related-entity status of the recipient corporation, or the asserted contractual defences.
The court interpreted 'transfer' broadly, including indirect and circuitous transfers implemented as part of a corporate plan to move assets within related entities.
Declaratory and payment relief was granted against the related corporation, including ongoing monthly payments, interest, and prior costs awards.
