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Court orders Dunkin’ Brands to pay $16.4 million to Quebec franchisees

CANTON, Mass. – Dunkin’ Brands Group Inc., the owner of Dunkin’ Donuts and Baskin-Robbins brands, said Monday that a Canadian court has ruled that it must pay a group of franchisees about $16.4 million, plus costs and interest.

As a result, the Canton, Mass.,-based company said it will increase its legal reserve for its current quarter. The company had previously reserved $4 million for losses related to the lawsuit.

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Dunkin’ said the lawsuit was filed in 2003 by a group of Quebec Dunkin’ Donuts franchisees based on events that took place 10 to 15 years ago.

The court issued its judgment Friday.

The company said it “strongly disagrees” with the court’s decision and plans to appeal.

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