The applicants, former franchisees, brought an application to enforce a settlement agreement requiring the respondent franchisor to pay $100,000.
The respondents withheld payment, arguing the applicants breached the agreement by continuing to use the franchise's store design and branding.
The court found that the applicants' use of generic open-concept shelving and flooring did not infringe on the franchisor's protected branding.
The court held that the respondents breached the settlement agreement and the duty of fair dealing under the Arthur Wishart Act by withholding the funds.
The application was granted and the respondents' counter-application was dismissed.
