Articles 2019


Ontario Court Revisits Disclosure of Leases in Recent Decision

  • 13 juin 2017
  • Pam Vermeersch

In a relatively recent decision, 2212886 Ontario Inc. v. Obsidian Group Inc., the Ontario Superior Court of Justice found that a franchisee of the Crabby Joe's system was entitled to rescind its franchise agreement due to "significant and material" omissions in the franchisor's disclosure document. Interestingly, the absence of a copy of the head lease for the business premises did not form a basis for rescission, in the court's view.

Droit des franchises

Mendoza v. Active Tire & Auto Centre Inc. - The Role of an "Informed Decision" in Rescission

  • 10 avril 2017
  • Gillian Scott and Stephanie HenryLLP

A recent decision of the Ontario Superior Court of Justice adopts a new approach to evaluating a claim for rescission under section 6(2) of the Arthur Wishart Act, (Franchise Disclosure), 2000 (SO 2000, c 3). Instead of considering whether the franchisor’s disclosure was materially deficient, thereby amounting to no disclosure at all, this recent decision looks to whether the franchisee made an “informed decision” on the basis of the disclosure provided.

Droit des franchises

And Then There Were Six: British Columbia's Franchise Legislation Came Into Effect on February 1, 2017

  • 06 février 2017
  • David Shaw, Arash Amouzgar and Saktish Pillai

On February 1, 2017, British Columbia joined Alberta, Ontario, Prince Edward Island, New Brunswick and Manitoba to become the sixth Canadian province to enact franchise legislation. In this article, the authors discuss the fundamental aspects of the B.C. Act and provide a practical and useful comparison of the B.C. Act to franchise legislation in the other five regulated provinces.

Droit des franchises

Who's the Boss? An Analysis of the Changing Workplaces Review: Special Advisors' Interim Report

  • 05 décembre 2016

In July 2016, special advisors leading the review of the Labour Relations Act (Ontario) and Employment Standards Act (Ontario) released an interim report, titled "Changing Workplaces Review: Special Advisors’ Interim Report". This article provides an overview of the salient aspects of the Report, with a particular focus on how the proposed amendments stand to impact the franchise industry.

Droit des franchises

Counting Calories: Calorie Disclosure Requirements Coming to Ontario Restaurant Menus in 2017

  • 11 octobre 2016
  • Laura Weinrib, Pei Li and David Shaw

As of January 1, 2017, the Healthy Menu Choices Act will require food service chains with 20 or more locations in Ontario to disclose calorie information for most standard food and drink items on menus, labels, tags and signage. This article provides an overview of the various disclosure obligations imposed by the Act and discusses the Act's application to, and impact on, franchisors in the food service industry.

Droit des franchises

Non-competes in the Franchise Context: How to determine enforceability?

  • 11 avril 2016
  • Jennifer Pocock

Franchise agreements often contain non-competition provisions or other restrictive covenants to prevent departing franchisees from using the knowledge and expertise gained during the term of their agreements to compete against the franchisor once the relationship is over. However, depending on the facts of each case and the specific terms in the franchise agreement, these non-competes may not be enforceable.

Droit des franchises

Franchisor Disclosure Obligations When a Franchisee Resells its Franchise

  • 23 septembre 2015
  • Jonathan Mesiano-Crookston and Andrea Wong

While many franchisors are aware that they have disclosure obligations when granting a franchise to a prospective franchisee, many forget that they have the same disclosure obligations where a franchisee is selling their franchise to another franchisee.

Droit des franchises

Non-Application of the Arthur Wishart Act

  • 16 juillet 2015
  • Chuck Merovitz and Yasmin Vinograd

The Arthur Wishart Act (Franchise Disclosure), 2000, S.O. 2000, c. 3 (“AWA”) came into force on December 15, 2009. The AWA provides certain inalterable rights and duties in the relationship between a franchisor and franchisee. These duties have been the subject of considerable litigation. However, there has been little discussion around the circumstances in which the AWA will not apply.

Droit des franchises

Severance in the Franchise World: The Cora Restaurants Decision

  • 07 juillet 2015
  • Tanya Walker and Andrew Ostrom

In 2176693 Ontario Ltd. v. Cora Franchise Group Inc., the Ontario Court of Appeal addressed the issues of the enforceability of a franchise agreement clause which purported to require the franchisee to provide a general release to the franchisor and the application of the doctrine of severability in the context of the Arthur Wishart Act (“AWA”).

Droit des franchises