ALG successfully defended its franchisor client from an injunction. ALG lawyers Andrew Max, Cori Singer, and Heather Lawson, with students Sarah Mackenzie and Matthew Farrell, acted for a franchisor that terminated its relationship with a franchisee because of the franchisee's misconduct. The franchisee sought an injunction, alleging that ALG's client had improperly terminated the franchise agreement.

After a hearing the Ontario Superior Court dismissed the franchisee's motion for an injunction and awarded ALG's clients $100,000 in costs. The Court found that the franchisee had failed to meet each of the three branches of the RJR-MacDonald test for injunctive relief.

The Court's decision in Kalbow Restorations Inc. v. Goodbye Graffiti Inc., 2025 ONSC 3696 clarifies that the "strong prima facie case" test for an injunction applies where a franchisee seeks to force a franchisor to continue the franchise relationship.

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The franchisee claimed they were only seeking a "prohibitionary injunction" to stop the franchisor from terminating their contract. The franchisee argued that the lower "serious issue to be tried" standard for prohibitionary injunctions applied.

ALG argued on behalf of the franchisor that because the injunction would force the franchisor to maintain the franchise relationship, the franchisee was actually seeking a "mandatory injunction", which requires to moving party to show a "strong prima facie case".

The Court agreed that the franchisee was seeking a mandatory injunction and, as a result, had to make out a strong prima facie case for breach of contract.

You can read the Court's decision in Kalbow Restorations Inc. v. Goodbye Graffiti Inc., 2025 ONSC 3696, here.