Amir Sammi entered into a franchise agreement with Timothys (a coffee business) to operate a store in

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Amir Sammi entered into a franchise agreement with Timothy’s (a coffee business) to operate a store in the Lakebeach Shopping Centre in Montreal. Timothy’s had a lease with four years remaining for a location on the third floor of the shopping centre. Sammi became a sublessee under Timothy’s lease. The franchise agreement expired on the same date as the sublease even though a traditional franchise agreement runs for 10 years to allow enough time for the franchisee to recoup his investment. Concerned about the short term remaining on the lease and the franchise, Timothy’s granted Sammi an option to extend the sublease and the franchise if Timothy’s renewed its lease with the mall owner. In the year prior to the expiry of the lease, Sammi left repeated messages for Timothy’s regarding the renewal of the lease. These messages were unanswered and representatives of Timothy’s asked Lakebeach not to pass on information about lease negotiations to Sammi. In the meantime, Timothy’s was negotiating with Lakebeach and entered into a lease for a location on the second floor. Timothy’s signed an agreement with a new franchise for that location. Eventually, Sammi was advised that his franchise agreement would end at the expiry of the third-floor lease as Timothy’s was unable to renew the lease for that location.Sammi brought legal action against Timothy’s.What is the basis of the action against Timothy’s? Evaluate Sammi’s chances of success. If Sammi is successful, what remedy or remedies can he expect?

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Canadian Business And The Law

ISBN: 9780176795085

7th Edition

Authors: Philip King Dorothy Duplessis, Shannon O Byrne

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