This recent case dealt with a Coffee Time Franchise Agreement that expired on July 31, 2014, but the Franchisee continued to pay royalties to February 16, 2016, and thereafter continued to use the name and exclusive suppliers up to January 25, 2021. The lower court ruling, upheld by the appellate court, was that the conduct of the Franchisee caused the contract to be extended, such that royalties had to be paid until the Franchisee stopped using the Coffee Time name and their exclusive suppliers on January 25, 2021 (ie: almost five (5) years of unpaid royalties).
Because the Franchisor started the claim on August 9, 2019, the court would only permit them to go back 2 years (ie: the limitation period), such that the damages for unpaid royalties was calculated from August 9, 2017 to January 25, 2021. This meant that the Franchisor lost the unpaid royalties between February 16, 2016 and August 8, 2017 because they were a little tardy in starting their claim, which the court said ought to have been discovered on the day the royalty payments stopped – February 16, 2016 – such that if they brought their claim by February 15, 2018, they would not have lost any recovery.
Coffee Time Donuts Incorporated v. 2197938 Ontario Inc., 2022 ONCA 435
https://www.canlii.org/en/on/onca/doc/2022/2022onca435/2022onca435.html