Articles 2019


Ontario Court Revisits Disclosure of Leases in Recent Decision

  • June 13, 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.

Franchise Law

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

  • April 10, 2017
  • Gillian Scott and Stephanie Henry

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.

Franchise Law

OBA Institute 2017: The Fundamentals of Franchise Law in Ontario - Record Attendance!

  • February 21, 2017
  • Joe McGrade, David Shaw and Melissa Won

On February 8, 2017, the Ontario Bar Association's Franchise Law Section and Sole, Small Firm and General Practice Section co-hosted an introductory franchise law seminar as part of the OBA Institute Program. The session was informative, well-received and saw record attendance. Congratulations to all those who participated!

Franchise Law

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

  • February 06, 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.

Franchise Law

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

  • December 05, 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.

Franchise Law

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

  • October 11, 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.

Franchise Law

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

  • April 11, 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.

Franchise Law

The Evolving Demands of Franchisor Disclosure

  • November 04, 2015
  • Alex Kagan

This article provides a basic-level overview of the issues associated with disclosure documents and their impact on franchisors, pursuant to the Arthur Wishart Act (the “AWA”). Disclosure is at the heart of the AWA - as stated by the Ontario Court of Appeal: “The purpose of the legislation is to protect franchisees and the mechanism for so doing is the imposition of rigorous disclosure requirements and strict penalties for non-compliance.”

Franchise Law

Franchisor Disclosure Obligations When a Franchisee Resells its Franchise

  • September 23, 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.

Franchise Law