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Ben’s key takeaways from the decision in 2161907 Alberta Ltd. v 11180673 Canada Inc. (Tokyo Smoke)

Take 2 minutes to review Ben's key takeaways from this case. 

Question Title

* 1. What do you think is the most important takeaway from this case? Rank each takeaway in order of importance to you (with 1 being the most important and 3 being the least important).

  1. A franchisor's termination of the franchise agreement may not be in bad faith, even if in breach of the terms of the agreement. If a franchisor (or franchisee) is mistaken and takes a position that is not necessarily unreasonable, malicious or inconsiderate, it may not constitute bad faith.
  2. A franchisor should fully understand its agreement with a franchisee about fee and payment waivers or deferrals, and be careful not to renege on those commitments without a sound basis and without providing reasons.
  3. Rushing to terminate a franchise agreement should typically (except in special circumstances) not be the first recourse, particularly where there is a legitimate dispute between the parties.
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