What was the resolution of the 6Points Food Services Ltd. litigation against Carls Jr.?

According to the 2025 Carls Jr. Franchise Disclosure Document, the litigation between 6Points Food Services Ltd. and Carls Jr. Restaurants LLC was settled on or about October 12, 2022. The terms of the settlement included Carls Jr. agreeing to pay the Franchisee Parties $5,500,000 US dollars. Both parties agreed to mutual releases of all claims, including those arising from the litigation, without any admission of liability from either party. The court granted the parties' motion to dismiss the case on October 14, 2022.

6Points Food Services Ltd., a Canadian developer and franchisee, originally filed an action against Carls Jr. in the Ontario Superior Court of Justice on December 23, 2015, seeking a declaration that its notice of rescission was valid due to alleged deficiencies in Carls Jr.'s franchise disclosures under Ontario's Arthur Wishart Act. 6Points also claimed that Carls Jr. failed to comply with certain representations, contractual obligations, and its obligation of fair dealing, seeking CD $8,000,000 in damages.

Carls Jr. denied all liability and filed a counterclaim against 6Points, Michael Meekins, and Michael Levine, asserting claims for breach of development, franchise, and letter of credit agreements, anticipatory repudiation, and breach of fair dealing. The counterclaim sought damages to be proven at trial and claimed that Michael Meekins and Michael Levine were liable for payment of all amounts owing by 6Points pursuant to a personal guarantee. Ultimately, the parties reached a settlement agreement, avoiding a trial and resolving all claims and counterclaims.