Articles 2019

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Today

Now and Then: An Overview of the Development of Location-Specific Disclosure Requirements, Where We Are and Where We Are Going Following Freshly Squeezed and Yogurtworld

  • August 19, 2021
  • Christine Jackson, partner, Osler, Hoskin & Harcourt LLP, and Dominic Mochrie, partner, Osler, Hoskin & Harcourt LLP

Determining the scope of "all material facts" that must be disclosed to franchisees is a key part of the continuing evolution of franchise law in Canada. This article provides important insights on two recent cases dealing with location-specific disclosure requirements, and sets out a helpful overview of how the law has developed in this area.

Franchise Law, Student Forum

Forum Selection Clauses and Jurisdictional Challenges in British Columbia: The Case of Canstar

  • June 28, 2021
  • Rory McGovern

A recent British Columbia Supreme Court decision provided the Court the first opportunity to interpret and apply certain sections of the relatively recently enacted BC Franchises Act. This article details the analysis and precedential value of the decision for the scope and application of s. 12 of the BC Act, as well as outlining the Court's in depth consideration of defining the franchise relationship.

Franchise Law, Student Forum

British Columbia Court of Appeal Class Action Decision Provides Important Insight into Potential Franchise System Consumer Liability Issues

  • June 21, 2021
  • Derek Ronde, Cassels Brock & Blackwell LLP

Can the franchisor-franchisee relationship create a conspiracy? In its decision Pearce v. 4 Pillars Consulting Group Inc., the B.C. Court of Appeal upheld the lower court's decision to certify a number of claims, including civil conspiracy, in a class proceeding against both franchisee and franchisor defendants. This article highlights the outcome of the decision and considers potential consequences and considerations for franchise systems.

Franchise Law, Student Forum

Missing Notes to Financial Statements and Other Disclosure Deficiencies

  • May 05, 2021
  • George A. Wowk, Cassels Brock & Blackwell LLP

A recent Ontario case considered the test for determining whether deficiencies in a disclosure document are so material so as to amount to no disclosure at all, thereby permitting rescission within two years under section 6(2) of Ontario's Arthur Wishart Act. The decision notes that the test, which considers whether the deficiencies impair the ability of a franchisee to make an informed decision, is an objective one, but which must account for the particular facts of each case.

Franchise Law, Student Forum

Good Faith in Contractual Performance - The Implications of Recent SCC Decisions for the Franchise Relationship

  • March 23, 2021
  • Andrew MacIver, Siskinds

The Supreme Court of Canada's two recent decisions in C.M. Callow Inc. and Wastech Services Ltd. revisited and clarified the principles of good faith contractual performance formulated in Bhasin. While it remains to be determined whether the common law duty of good faith is different from the franchise-specific duty of good faith and fair dealing, these general principles of contract law have important implications for parties to the franchise relationship.

Franchise Law, Student Forum

Got Damages? A Review of the Alberta Court of Appeal’s Clarification on Net Loss Damages Related to the Termination of a Franchise Agreement

  • March 23, 2021
  • Peter Snell, Gowling WLG, and Pam Vermeersch, Gowling WLG

The recent decision of the Alberta Court of Appeal in 1777453 Alberta Ltd. v. Got Mold Disaster Recovery Services Inc. provides important insight into the calculation of net loss damages upon the termination of the Franchisee-Franchisor relationship. This article provides a brief of the case and analysis of how the Court clarified damages from a net loss perspective, along with other issues.

Franchise Law, Student Forum

Court Finds that Franchisee Took Commercially Reasonable Steps to Dissociate from Franchisor

  • February 20, 2021
  • Steven Goldman and Alana Spira

When the franchise relationship comes to an end, ensuring dissociation from the franchisor while continuing on with business can present challenges. In this case the Court dealt with a dispute as to whether there had been dissociation per the parties' agreement, and provides guidance on what constitutes commercially reasonable efforts.

Franchise Law, Student Forum

Penalty Clauses and Liquidated Damages Provisions in Franchise Agreements

  • January 26, 2021
  • Adrienne Boudreau and Jason Brisebois, Sotos LLP

Penalty and liquidated damages clauses may seem like an attractive option in the contractual legal toolkit for franchise agreements. However, there are potential drawbacks and drafting considerations to keep in mind. This article provides an overview of these clauses, their benefits, and thoughts on their utility in the franchise context.

Franchise Law, Student Forum

Welcome from the Chair

  • November 16, 2020
  • David Shaw, Chair OBA Franchise Section

A note of welcome from our Section Chair, David Shaw, highlighting the group's activities and upcoming programs for this year.

Franchise Law, Student Forum