Franchisor letter to franchisees

If this activity does not cease, we will take such further legal steps, without notice to you, as are necessary against your company and the personal guarantors, to have this activity enjoined.

Grand & Toy Limited
November 16, 2001

Franchisor letter to franchisees
Peter Vanexan

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NOTICE TO ALL LICENSEES

It has come to our attention recently that many of you are circulating a Notice to your customers regarding the December 31, 2001 expiration of your Licence Agreements. We also note that this Notice is posted in some of the stores.

Although your Notice does not specifically indicate that the store is closing as at December 31, 2001, the inference in your last sentence is that Grand & Toy will no longer be in business at this location after December 31, 2001. We have had several calls from customers indicating that they are sorry to see us close.

Firstly, the physical premises in which you conduct business belong to Grand & Toy. Therefore, anything posted in or around the premises can only be done with our permission. You do not have permission to post this or any other similar notice in the premises.

Secondly, in Section 9.3 of the Licence Agreement, your company and each of you personally, agreed to “…refrain from operating in any manner which could reflect adversely on Grand & Toy’s name or goodwill.” This Notice, that is posted and being used as a bag stuffer or circulated by other means, is interfering with the ongoing relationship between Grand & Toy and its customer and is damaging the name and goodwill of Grand & Toy.

In light of the damage being done to Grand & Toy, we are hereby giving you notice that you are to IMMEDIATELY remove the Notice from the premises and cease and desist from further distributing or posting, this or any other literature that has the effect of damaging the reputation and goodwill of Grand & Toy.

If this activity does not cease, we will take such further legal steps, without notice to you, as are necessary against your company and the personal guarantors, to have this activity enjoined.

Pete Vanexan


Risks: Bad faith and unfair dealings, Expropriation without compensation, Refusal to renew contract, Threats of lawsuits, Threatening letters, Intimidation, Canada, 20011116 G&T Letter

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