Alexander, Daljit back with Keller Williams while legal battle continues

Ontario real estate businessmen Marvin Alexander and Sunny Daljit have returned to Keller Williams on a judge’s order, though litigation with the Texas-based franchise remains active.

Daljit, of Mississauga, and Alexander, of Ottawa, have a deep history with Keller Williams, having built up franchises there with hundreds of agents. They went in a new direction in June 2025, rebranding their brokerages and bringing as many as 600 agents with them to Royal LePage. 

This brought on Ontario Superior Court action by Keller Williams, which obtained an interlocutory (temporary) injunction against Alexander and Daljit to halt them from operating new Royal LePage brokerages for the remainder of their existing contract terms. The pair attempted to appeal that decision, but the court upheld the injunction in a decision released in March. 

As of recently, Alexander and Daljit are registered under new brokerages under a Keller Williams banner to comply with the court orders, they confirmed to Real Estate Magazine.

“Both Alexander and Daljit have returned to Keller Williams, although none of their real estate agents, who are independent contractors, have elected to do so,” they said in a joint statement. 

Asked about what this move means for their businesses, they said, “Our future plans will depend on the outcome of the legal process.”

Lawsuit increased to $15 million

At the heart of the case is whether franchisees can break away and align with a competing brokerage while still under contract. In this case, Marvin and Alexander had Keller Williams franchise agreements with renewal terms extending to 2028 and 2031, according to court documents. 

In court filings, Alexander and Daljit have explained their move to Royal LePage by arguing Keller Williams has not kept up with technology or adapted its “American business model” to the Canadian marketplace. 

Through their companies, VIP Realty Inc. and Associates Realty Solutions Inc., they are suing for damages, including claims tied to the alleged repudiation of the franchise agreements and the granting of the December 2025 injunction. On June 5, Marvin and Alexander amended their total claims from $5 million to $15 million.

The filing further alleges Keller Williams undermined the value of its brand by, among other things, increasing fees charged to franchisees, failing to meet certain Canadian regulatory and tax obligations, not enforcing system standards, and allowing Canadian royalty revenues to be diverted outside the country.

KW defends allegations

On May 5, Keller Williams filed a statement of defence denying the allegations, calling them “baseless” and “incapable” of supporting Alexander and Daljit’s lawsuit.

“The plaintiffs … continued to operate as KWR franchises for years following the alleged breaches. Their conduct in this regard is wholly inconsistent with their claim that the license agreements were repudiated,” reads the filing. 

Defence to claims about royalty revenue

Marvin and Daljit have alleged Keller Williams “permitted vast revenues generated in royalties from Canadian franchisees to be diverted outside of the Canadian Keller Williams system” rather than being used to support and grow the business domestically.

In its defence, Keller Williams said the payments they are referring to not constitute a wrongful diversion of revenues, and denies that such payments deprive Canadian franchisees of operational support.

“The payments instead reflect a longstanding allocation of royalties generated in Canada that arose from the buyout of the former Canadian regional franchisee owner, Ron Kubek, in or about 2008,” reads Keller Williams’ defence.

“Since that time, a fixed portion of gross royalties generated in Canada (approximately 12 percent and not the amounts alleged) has been allocated to a corporation associated with  Kubek on an earnout basis, with the remaining royalties shared between Maple Leaf and KWR.  This was in place before the Plaintiffs by Counterclaim entered into the License Agreements and was neither newly introduced nor concealed.”

KW responds to latest moves

In an email to REM, Keller Williams spokesperson Darryl Frost acknowledged Alexander and Daljit’s move back to Keller Williams. 

“While the litigation remains ongoing, Keller Williams is aware of changes to certain licensing and brokerage registrations. Those changes are part of matters currently before the Court, and we will continue to address the matter through the judicial process.”

He added, “issues regarding compliance with the injunction remain before the court,” and “Keller Williams will continue to enforce its contractual and legal rights through the judicial process.”

Royal LePage addresses the matter

In a statement provided to REM, Royal Lepage said, “We respect the court’s decision and the legal process. Our focus remains on supporting Royal LePage brokerages, agents and staff, and ensuring they have the resources needed to operate their businesses and deliver outstanding service to their clients.

Allegations in the ongoing litigation have not been proven in court.

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