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Franchise Rescission Claim – Claim Analysis Under the Alberta Franchises Act

We were retained by counsel to a franchisor to analyze a claim for rescission under the Alberta Franchises Act.

Based on a detailed review of the franchisee’s general ledgers, we identified numerous related party transactions: management fees, professional fees, advertising and promotion charges.

We showed, based on operating results for other units in the system, that the amounts charged were well above market rates. The matter proceeded to trial and the decision was under reserve.

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