Case Background:
The case concerned the 2018 purchase of a dollar-store franchise located in Salmon Arm, B.C., operated by 1040526 B.C. Ltd. The plaintiff, 1162719 B.C. Ltd., led by Zi Ye, sought to buy the business as part of an immigration plan to Canada. Yonghui Ren, the sole director of 1040526 B.C. Ltd., and her husband, Yu Tian, were selling the business after using it to immigrate years earlier. A key component of the transaction required franchisor consent to transfer the franchise agreement to the plaintiff.

Key Legal Issues:
The primary legal issues were fraudulent misrepresentation, negligent misrepresentation, and breach of contract. The plaintiff claimed that Ren and Tian altered an email from the franchisor, misleading them about the necessary approvals to finalize the sale. They argued they would not have completed the purchase had they known the franchisor’s conditions had not been met.

Court’s Findings:
The court found Ren and Tian liable for fraudulent misrepresentation, concluding they intentionally withheld the franchisor’s requirements to induce the sale. Evidence showed they had altered communications to omit key information about the franchisor's conditions.

Damages and Remedies:
The court awarded $120,000 in damages to 1162719 B.C. Ltd. for financial losses related to the franchise’s unapproved transfer. Additionally, a constructive trust was imposed on a portion of a Kelowna property purchased by Ren and Tian with proceeds from the sale, based on the fraudulent circumstances of the transaction.