Background:

• A franchise agreement was signed on March 2, 2024, between 9346-0251 Québec inc. (Franchisor) and 9497-0183 Québec inc. (Franchisee) for the operation of a Buffalo Bill Wings restaurant.
• The Franchisor claims $9,384 in unpaid royalties and seeks contract termination.
• The Franchisee disputes this, alleging serious breaches by the Franchisor.

Arguments of the Parties:

Franchisor:

• The Franchisee has failed to pay royalties since August 1, 2024.
• The Franchisee violated the contract by purchasing supplies from unauthorized vendors.
• Allowing the Franchisee to continue operating without payment creates financial risks.

Franchisee:

• The Franchisor breached the agreement by authorizing a competing Buffalo Bill Wings location within its exclusive territory.
• The Franchisor unlawfully interfered in its operations.
• The Franchisor failed to supply essential products.
• An ongoing Superior Court case seeks injunctive relief against the Franchisor.

Court’s Decision:

• Full payment of royalties denied due to the Franchisor’s alleged breaches.
• Temporary royalties set at $750 per month until the case is resolved.
• Request for mandatory supply purchases rejected due to lack of specifics on suppliers.
• No urgency demonstrated to justify all of the Franchisor’s claims.
• Automatic foreclosure denied, but sanctions may be requested if the Franchisee fails to comply.