1. List and describe the types of licenses that are required for a hotel or a restaurant in your jurisdiction.

Case study

P.P.H. v. N.F. (June 29, 1995, Doc. No. 166/91, Fleury J. (Ont. Gen. Div.))

The plaintiff sold frozen food franchises. The defendants were led to believe by the plaintiff's material that a store they intended to open would generate a pre-tax income of $51,000. In August 1988, the defendants paid $15,000 of the $25,000 franchise fee. They were then informed that they would be required to raise financing of about $140,000 and that this amount did not include payment of the first and last months' rent and other closing expenses. The final amount due was substantially greater than the amount forecast by the franchiser. The store remained in operation for about a year. The franchisees finally realized that the store would never generate the revenue expected, and they abandoned the franchise. The franchiser sued to recover damages. The court found that the forecast pretax income was not realistic. Such amounts had never been attained by even the most established franchise in the group. The statements made by the franchiser during the invitation to treat had been reckless and misleading. The action was dismissed, and the contract rescinded. Normally, when a contract is rescinded, there is a return of some money, but not so in this case. The court found that the franchisees had acted negligently when they abandoned the store without notifying the franchiser. By the time the franchiser finally learned of the abandonment, the inventory was beyond recovery, resulting in unnecessary losses to the franchiser.

Case Study Analysis Template

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Use the Case study Analysis Template to consider and record the details of both sides of the legal case