Court Finds that Franchisee Took Commercially Reasonable Steps to Dissociate from Franchisor

Tiny Hoppers Corp., Nasim Management Solutions Inc., Tiny Hoppers Canada Inc., Brigida Aversa, Theresa Bertuzzi, and Rashid Nasim (the “Franchisor” or “Tiny Hoppers”) brought a motion for summary judgment seeking an order that 2402074 Ontario Inc., 2359251 Ontario Inc., 2370471 Ontario Inc., 2409133 Ontario Inc., Nahid Almashni, and Jamal Mansour Mayali (collectively, the “Franchisees” ) repay $500,000 paid pursuant to Minutes of Settlement. The Franchisor also claimed that the Franchisees made defamatory remarks and sought damages on this basis.

The Franchisees brought a cross-motion seeking an order dismissing the Franchisor’s claim and requesting an order that the Franchisor pay the balance of $224,000 still owing under the Minutes of Settlement.  

The motion was heard by Justice R. Smith on February 25, 2020 and the Reasons for Decision released April 28, 2020.