Area of Expertise
Franchise and Licensing Disputes
Canada has the second largest franchise industry in the world, second only to the United States. The hospitality industry (e.g. fast food and other restaurants) and retail industry account for the majority of franchises. With the rapid growth of franchising in Canada over the past years, there has been an increase in franchising disputes. Licensing agreements give permission to a licensee to use the brand, patent or trademark of another party. Such agreements are prevalent in the technology and pharmaceutical industries, among others. Disputes often arise between the licensor and licensee due to an alleged breach of the agreement by one of the parties.
CHS has significant experience as financial experts in franchising and licensing disputes, having been engaged by both franchisors/licensors and franchisee/licensees. In one of our franchising cases, we quantified the franchisor’s lost profits due to the closure of a franchise location. This included the quantification of lost royalties, franchise fees, gross margin on sale of products to franchisee, and rebates/allowances from suppliers. One of our licensing dispute engagements involved the quantification of amounts due to the licensor pursuant to the license agreement, if any, upon the sale of the shares of licensee company. This case also involved estimating the value of the licensed biotechnology to the licensee company.
Matter involving the quantification of losses of a franchisor due to the expropriation of the property from which a franchised restaurant operated and was therefore required to close.Learn More
Matter involving an estimate of franchisor’s disturbance damages due to the expected closure of a franchised grocery store resulting from expropriation of the property from which the store operates.Learn More
News & Insights
Prem Lobo’s article "Causation and Financial Losses: Factors to Consider, The Expert’s Role, and Reflecting the Impact of Unrelated Factors (COVID-19)" (co-author) was published in the 2021 Journal of Business Valuation.
Antonina Wasowska’s article "Smaller, Not Simpler - Challenges with Litigation Engagements for Smaller Businesses" (co-author) was published in the 2021 Journal of Business Valuation.
Paula Frederick’s article “Interrelationship of Franchisor and Franchisee Claims” was published in the Ontario Expropriation Association Magazine – Summer 2021 Edition.