Les Stewart Loses

Nutrilawn did not renew Stewart’s franchise in 1997…Nutrilawn sued Stewart for breach of contract. Stewart claimed Nutrilawn did not renew his contract because he had become a franchisee advocate.

The INFO Franchise Newsletter
April 1, 1999

Les Stewart Loses

Canadian%20Alliance%20of%20Franchise%20Operators%20Les%20Stewart.jpg

Former Nutrilawn franchisee, Les Stewart, (Head of the Canadian Alliance of Franchise Operators Tel: (705) 737-4635), has been ordered the pay Nutrilawn $74,000 in damages, unpaid fees and royalties.

Justice Katherine Swinton of Ontario Court, General Division found that Nutrilawn made no misleading statements nor deliberately withheld information and further noted that Ontario has no legal requirement for franchisors to disclose capital requirements or full earning information. Stewart claimed that Nutrilawn’s lack of disclosure about earnings of actual franchisees misrepresented the truth about his earnings potential.

Sales projections in Nutrilawn’s literature ranged from $180,000 to $ 1 million. Stewart claimed that when he purchased his franchise in 1992, he wasn’t told 70% of the 20 franchises in the system were making less than the lowest earnings projection in the literature.

Larry Maydonik, president of Nutrilawn (Tel: (416) 620-7100) says “Stewart’s financial difficulties were a result of his own inefficiency and poor decisions and that this is the first time in the system’s 11 year history that they have terminated a franchisee.”

Nutrilawn did not renew Stewart’s franchise in 1997. Stewart has been operating an independent lawn care company since.

Nutrilawn sued Stewart for breach of contract.

Stewart claimed Nutrilawn did not renew his contract because he had become a franchisee advocate.

Reprinted with permission.


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