Quebec court orders Dunkin' Brands to pay $16.4 mln to franchisees 

(MENAFN - ProactiveInvestors - N.America) Dunkin' Brands Group (NASDAQ:DNKN) said Monday that a Canadian court has ruled that it must pay a group of franchisees about 16.4 million, plus costs and interest.

The company said it will increase its legal reserve of 4 million for its current quarter, in relation to the court ruling.

The lawsuit was filed in 2003 by a group of Quebec Dunkin' Donuts franchisees on a variety of claims that are based on events which occurred 10 to 15 years ago.

The Quebec Superior Court ruled against Dunkin' Brands on June 22, 2012, and ordered the company to pay 16.4 million to the franchisees, plus costs and interest, representing loss in value of the franchisees and lost profits.

The company initially reserved 4 million on its consolidated balance sheet for the potential loss.

Dunkin' Brands does not agree with the decision reached by the court, and believes the damages awarded were unwarranted.

The company said it is proud of its efforts to support all of its franchisees in Quebec and across the globe, and that it will vigorously appeal this decision.

Dunkin' Brands is the operator of Dunkin' Donuts and Baskin-Robbins.

Dunkin' Brands is a franchisor of quick service restaurants, with more than 16,800 points of distribution in nearly 60 countries worldwide.

At the end of 2011, Dunkin' Brands operated more than 10,000 Dunkin' Donuts restaurants and more than 6,700 Baskin-Robbins restaurants.

For fiscal 2011, the company had franchisee-reported sales of approximately 8.3 billion.