Dunkin' Donuts of America, Inc., a Massachusetts Corporation Licensed to Transact Business in New Jersey, and…

Summary

The Supreme Court of New Jersey held that the Chancery Division erred in fashioning an equitable remedy that required Dunkin’ Donuts to pay the franchisee $115,000 upon termination for intentional under‑reporting of sales, and modified the judgment to enforce the contract’s termination and damages provisions without such payment. The Court affirmed the franchisor’s right to terminate for good cause and rejected the notion of an "inappropriate windfall" or restitution to the guilty franchisee.