To Be or Not to be: Franchisee or Licensee?

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

On May 1, 2023, the Ontario Superior Court heard two motions in the matter of Tripsetter Inc. v 2161907 Alberta Ltd.[i] The matter involves a dispute over the nature of a former business relationship in relation to the operation of a retail cannabis shop. Tripsetter Inc. (the “Plaintiff”) claims that it operated as a franchisee of 2161907 Alberta Ltd (“216”) and has sought a rescission claim and damages under the Arthur Wishart Act (Franchise Disclosure), 2000, S.O. 2000, c. 3 (the “Act”), whilst 216, along with Canopy Growth Corporation and Justin Farbstein (collectively with 216, the “Defendants”) maintain that the parties entered into a license agreement and therefore, the relationship was one of licensor/licensee.