Injunctions play a key role in franchising. They enable franchisors to enforce in-term and post-term covenants contained in their franchising agreements to protect their brand, reputation, and franchise system generally.
Interlocutory Injunctions in the Franchise Context
When pending a trial wherein a franchisor seeks to enjoin a franchisee from breaching a restrictive covenant or a franchisee seeks to enjoin a franchisor from terminating their relationship, Canadian courts have generally applied the following three-part test. This article explains.
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