COMM 431 Study Guide - Midterm Guide: Mister Donut, Fiduciary, Chartered Accountant
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Jirna ltd. v mister donut of canada ltd. Facts: mr. donut of canada (hereinafter referred to as mr. Donut ) is a canadian subsidiary of mr. donut of. The company had exclusive authority in canada to enter into franchise agreements with those who would become dealers of the product. In 1962, jirna limited, a company incorporated under the laws of ontario became a franchised dealer at three locations in toronto. It entered into one agreement dated july 1, 1962 and was assignee of two other agreements entered in by nathan freeman and irving stern, officers of the company. The purchasing of equipment from mr. donut for each of the three locations. A sublease of rent on two of the three locations at a markup (jirna did not know of the markup) A franchise fee of 2% on gross sales, of which 1% would be directed to advertising.
