An appeals court has confirmed that Dunkin' Donuts will have to pay off franchisees for lack of support during the wipe-out years that saw the number of franchises dwindle from about 250 to 12 in Quebec.
But the judges recalculated the original award downwards to $10.9 million.
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Bit o' history: 30 DD franchisees laid a $7 million lawsuit against the company in 2003 for a lack of support. Their demand rose to $17 million when the case went to trial.
The plaintiffs were eventually rewarded $16.5 million after an exhausting 71 day court case.
Some new calculations revised that sum downwards in the recent decision but it's still a major victory for those who saw their businesses go kaput.
The money will be divided between the 30 former franchise owners
The top benefactor will be Sylvain Charbonneau who owned six franchises, mostly in St. Eustache and Lachute. He will receive $2.6 million.
The owners of the outlet at 7955 Decarie and another on Lacordaire - Ramond Masi and JohnCostini - get almost $1 million.
A duo in St. George de Beauce gets $772,000 and the lowest amount goes to Claude St. Pierre and Lynda Viel of Riviere du Loup, who get $91,000
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The judgment might make franchisers skittish about locating in Quebec, which may or may not be a bad thing. I'm told that wrinkles in Quebec law already make franchising a bit of a challenge here, which is why such major U.S. chains as White Castle, Arbys and Taco Bell have little or no presence here.
This judgment won't send them rushing in, probably a relief to mom'n'pop cafes and greasy spoons.
(They could have rechristened Dunkin' Donuts as Terry Harper's, no? - Chimples)
Tim Horton's, which now has about twice as many outlets as DD had at its peak in Quebec, was an unstoppable juggernaut upon its arrival and it's anybody's guess that anything could have been done to stop it in Quebec.
I've theorized that the incessant mockery of Dunkin Donuts laid on by the popular comedy TV show Rock et Belles Oreilles - which frequently showed a police dog sitting on a counter stool - didn't help the brand here.
That theory is supported by the fact that DD survived slightly longer in anglo parts of town, as the NDG branch two years ago and the one on Wellington in Verdun seems to be going strong.
But the judges recalculated the original award downwards to $10.9 million.
Bit o' history: 30 DD franchisees laid a $7 million lawsuit against the company in 2003 for a lack of support. Their demand rose to $17 million when the case went to trial.The plaintiffs were eventually rewarded $16.5 million after an exhausting 71 day court case.
Some new calculations revised that sum downwards in the recent decision but it's still a major victory for those who saw their businesses go kaput.
The money will be divided between the 30 former franchise owners
The top benefactor will be Sylvain Charbonneau who owned six franchises, mostly in St. Eustache and Lachute. He will receive $2.6 million.
The owners of the outlet at 7955 Decarie and another on Lacordaire - Ramond Masi and JohnCostini - get almost $1 million.
A duo in St. George de Beauce gets $772,000 and the lowest amount goes to Claude St. Pierre and Lynda Viel of Riviere du Loup, who get $91,000
The judgment might make franchisers skittish about locating in Quebec, which may or may not be a bad thing. I'm told that wrinkles in Quebec law already make franchising a bit of a challenge here, which is why such major U.S. chains as White Castle, Arbys and Taco Bell have little or no presence here.This judgment won't send them rushing in, probably a relief to mom'n'pop cafes and greasy spoons.
(They could have rechristened Dunkin' Donuts as Terry Harper's, no? - Chimples)
Tim Horton's, which now has about twice as many outlets as DD had at its peak in Quebec, was an unstoppable juggernaut upon its arrival and it's anybody's guess that anything could have been done to stop it in Quebec.
I've theorized that the incessant mockery of Dunkin Donuts laid on by the popular comedy TV show Rock et Belles Oreilles - which frequently showed a police dog sitting on a counter stool - didn't help the brand here.
That theory is supported by the fact that DD survived slightly longer in anglo parts of town, as the NDG branch two years ago and the one on Wellington in Verdun seems to be going strong.