What specific legislation did 6Points invoke in its claim against Carls Jr. regarding franchise disclosures?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
This proceeding was a consolidation of two actions commenced by 6Points Food Services Ltd. ("6Points"), a Canadian developer and franchisee, in the Sup. Ct. of Justice, Ontario (No. 15-453370 and No. 16-546487).
On December 23, 2015, 6Points filed an action in the Ontario Superior Court of Justice against CJR (court file no. 15-543370). The action seeks a declaration that 6Points' November 10, 2015 notice of rescission validly rescinded the development, franchise, and "related" agreements with CJR. 6Points' notice and its Statement of Claim invoke Ontario's Arthur Wishart Act to allege that CJR's franchise disclosures were deficient. 6Points further alleges that CJR failed to comply with certain representations and contractual obligations, and its obligation of fair dealing. In addition to the declaration, 6Points seeks CD $8,000,000 in damages, along with other incidental relief.
On February 11, 2016, 6Points filed an action in the Ontario Superior Court of Justice against CKR, Ned Lyerly, Jr., Michael Woida and Jeff Branton (court file no. 16-546487). The action reasserts the same claims as in the action described above. On August 8, 2016, the Court ordered that the two actions described above are consolidated into a single action under court file no. 15-543370.
On August 18, 2016, 6Points served an Amended Statement of Claim in the consolidated action, against the defendants in the actions above. The Amended Statement of Claim reasserts the same claims advanced by 6Points in the two actions described above. On August 30, 2016, the defendants served the Statement of Defence of all defendants and CJR's Counterclaim. The Statement of Defence denies all liability and requests that the action be dismissed.
On August 30, 2016, the defendants served the Statement of Defence of all defendants and CJR's Counterclaim. The Statement of Defence denies all liability and requests that the action be dismissed. CJR's Counterclaim names 6Points, Michael Meekins and Michael Levine as defendants ("Franchisee Parties").
Source: Item 3 — LITIGATION (FDD pages 22–26)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, 6Points Food Services Ltd. invoked Ontario's Arthur Wishart Act in its claim against Carls Jr. The claim alleged that Carls Jr.'s franchise disclosures were deficient. 6Points, a Canadian developer and franchisee, initially sought CD $8,000,000 in damages along with other relief.
The legal dispute began with 6Points filing an action in the Ontario Superior Court of Justice on December 23, 2015, followed by another action on February 11, 2016, against CKR, Ned Lyerly, Jr., Michael Woida, and Jeff Branton. These actions were later consolidated. 6Points reasserted the same claims in an Amended Statement of Claim on August 18, 2016. The defendants denied all liability and requested the action's dismissal, with CJR filing a Counterclaim.
The parties eventually reached a settlement agreement on or about October 12, 2022, where the defendants agreed to pay the Franchisee Parties $5,500,000 US dollars. The agreement included mutual releases of all claims without any admission of liability. The court dismissed the case on October 14, 2022.