Is a plaintiff entitled to a loss of opportunity as a result of the loss of a franchise?

Ontario, Canada


The following excerpt is from Wallace v. Allen, 2007 CanLII 8935 (ON SC):

As stated by Ground J. in Aspiotis v. Coffee Time Donuts Inc.: [See Note 13 below] The defendants' expert proceeded on the basis of calculating the anticipated annual profits from the franchise business and calculated damages based upon the loss of such profits for a reasonable period of time during which the plaintiff might have been expected to pursue an alternative business opportunity. In my view, the latter approach is the correct approach. The claim for damages is based on loss of opportunity and clearly the plaintiff would have an obligation to mitigate such damages. He is not entitled to claim damages based upon the amount he would have to pay to acquire a business which would earn him annually for in indefinite period the amount of the anticipated profits from the franchise operation. He is clearly obligated to mitigate his losses by pursing a reasonable alternative business opportunity.

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