Articles - Focus on Franchising

About Articles The following articles are published by the Franchise Law Section of the Ontario Bar Association. Members are encouraged to submit articles. About Articles

Editor: Philip Kennedy

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Today

Chatting it Up with ChatGPT: Franchise Law Insights from an AI Language Model

  • April 03, 2023
  • Adrienne Boudreau, ChatGPT

In this interview with ChatGPT, an AI language model trained by OpenAI, we explore the role of AI in Canadian franchise law. ChatGPT tells us what it knows about franchise law and practice. We also discuss the potential benefits and risks of using AI in legal practice, and how lawyers can best utilize ChatGPT. Finally, we get a glimpse of ChatGPT's sense of humour when it's asked to name this article.

Franchise Law, Student Forum

Don't Wing It When It Comes to Disclosure... or a Trial: Case Comment on Jayasena

  • April 03, 2023
  • Jonathan Mesiano-Crookston, with thanks to Sara Fahmi for her assistance

In this trial decision, the Court considers whether asking a franchisee to sign a new franchise agreement amounts to a "grant" of a franchise, such that a franchisor cannot rely on the Wishart Act's disclosure exemption provisions. The Court also weighs in on the impact that unsubstantiated fraud, perjury, and collusion allegations, and the needless lengthening of trial time, will have on trial costs.

Franchise Law, Student Forum

Of Paramount Importance

  • April 03, 2023
  • Lauren Baker

This trial decision trio of rescission cases provides new insights into the law around disclosure exemptions, the effect of having prospective franchisees sign a "generic" franchise agreement, addresses whether a franchisee can rescind a previously terminated franchise agreement, and discusses the law around franchisor's associates.

Franchise Law, Student Forum

Dispensing Justice: Spina v. Shoppers Drug Mart

  • April 03, 2023
  • Liisa Kaarid and Adil Abdulla

We've read and summarized all 864 paragraphs of the Spina v. Shoppers Drug Mart decision so that you don't have to! Learn the four key takeaways that every franchise lawyer should know from one of Canada's longest-running franchise class actions.

Franchise Law, Student Forum

Managing Franchise Defaults in the Post-COVID Era

  • December 09, 2022
  • Andrew MacIver

The COVID-19 pandemic has caused many changes for us all. Such changes and challenges have impacted franchising generally. At times, these new business realities have resulted in franchisees defaulting on their obligations under their franchise agreements. What is the best way to respond to these defaults? This article considers strategies for managing defaults in franchise relationships in our new, post-COVID world.

Franchise Law, Student Forum

Franchise Injunctions Revisited: Two Recent Decisions Demonstrate that Garcha Bros. is Not the End of the Story

  • July 15, 2022
  • Derek Ronde and Danielle DiPardo, Cassels Brock & Blackwell LLP

Restrictive covenants can be an essential feature of a franchise agreement, but how will they be enforced? Recent developments in the law have cast some confusion and inconsistency on the interpretation, scope, and enforceability of these clauses, including the test for obtaining injunctions. In this article the authors review recent decisions, and weigh in on the debate.

Franchise Law, Student Forum

Franchise Releases

  • July 15, 2022
  • Jonathan Mesiano-Crookston, Goldman Hine LLP

Section 11 of the Wishart Act is a protective provision preventing any waiver or release of rights. The Courts have interpreted the section strictly, presenting challenges in practice around ensuring enforceability of contractual releases. This article discusses the legal developments interpreting s. 11 and recent decisions clarifying its scope.

Franchise Law, Student Forum

The Enforcement of Restrictive Covenants Against Non-Contracting Parties

  • April 05, 2022
  • Idan Erez, Hoffer Adler LLP

Restrictive covenants, such as non-compete and non-solicitation clauses, are a common feature of franchise agreements - but how far does the scope of enforcement extend? Despite tenets of privity, Courts have demonstrated a willingness to bind non-contracting third parties in certain franchising contexts. This article discusses the evolution of judicial consideration, and examines a recent B.C. Court of Appeal decision providing welcomed guidance on these issues.

Franchise Law, Student Forum

Accelerating Growth Through Managed Cloud Kitchens and Ghost Kitchens

  • December 04, 2021
  • Clark Harrop and David Shaw, Dale & Lessmann LLP

The phenomenon of ghost kitchens has increasingly sparked the interest of many in the restaurant industry. With Covid-19 especially, delivery represents a large and growing proportion of the foodservice industry. This article explores the issues, opportunities, and challenges of ghost kitchens for franchisors amidst a rapidly changing environment.

Franchise Law, Student Forum