Articles 2022

Today
Today

To Be or Not to be: Franchisee or Licensee?

  • January 17, 2024
  • Ashley Caldwell, lawyer, McKenzie Lake Lawyers

This article summarizes the outcome of plaintiff's and defendant's motions in the ongoing Ontario Superior Court of Justice case titled Tripsetter Inc. v 2161907 Alberta Ltd. 2023 ONSC. A central issue in this case is the question of whether Tripsetter was a franchisee of the defendant, and able to avail itself of remedies provided by the Arthur Wishart Act (Franchise Disclosure), 2000, S.O. 2000, c. 3, or was merely a licensee.

Franchise Law, Student Forum

The Duty of Mitigation in Franchise Disputes

  • January 17, 2024
  • Idan Erez, partner, Hoffer Adler LLP

This article examines how the mitigation doctrine applies in franchise disputes. After identifying the rationales for mitigation, consideration is given to the circumstances under which franchisees and franchisors have a duty to mitigate, and circumstances where they do not. Both franchisees and franchisors should mitigate damages resulting from a breach of the franchise agreement; however, franchisees are not under a duty to mitigate their damages after rescission of the franchise agreement.

Franchise Law, Student Forum

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