Articles - Focus on Franchising

About Articles The following articles are published by the Franchise Law Section of the Ontario Bar Association. Members are encouraged to submit articles. About Articles

Editor: Stephanie Sugar

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Today

A Deeper Dive on the New Wishart Act Amendments

  • October 19, 2020
  • Dominic Mochrie, partner, Osler, Hoskin & Harcourt LLP, and Christine Jackson, associate, Osler, Hoskin & Harcourt LLP

Long-awaited amendments to Ontario's Arthur Wishart Act have now come into force. This article highlights the new amendments and provides insight into their interpretation and potential impact.

Franchise Law, Student Forum

When is a Notice of Rescission a Notice of Rescission?

  • July 30, 2020
  • Rory McGovern and Daniel Freiheit

In 2352392 Ontario Inc. v. Msi, the Ontario Court of Appeal delivered a significant decision that will impact the application of Section 6(3) of the Arthur Wishart Act. The decision, technically read, allows court pleadings to constitute a valid notice of rescission under the Act.  However, the principles applied by the Court of Appeal shed light, more broadly, on a new level for how the Act will be interpreted in favor of franchisees.

Franchise Law, Student Forum

Fit for Rescission?

  • May 13, 2020
  • Jennifer Pocock, Sakshi Pachisia, and David Kornhauser

In Raibex the Ontario Court of Appeal narrowed the availability of rescission for franchisees, stating that the availability of rescission under s. 6(2) of the Arthur Wishart Act was dependent on whether the franchisee was effectively deprived of the opportunity to make an “informed investment decision”. The recent decision of 2483038 Ontario Inc. v. 2082100 Ontario Inc. provided clarification on this issue and on who might constitute a franchisor’s associate pursuant to the Act.   

Franchise Law, Student Forum

Cutting off Franchisee's Supplies Leads to Award of Punitive Damages

  • March 10, 2020
  • Jonathan Messiano-Crookston and Alana Spira

In 0923063 B.C. Ltd. v. JM Food Services Ltd., 2019 BCSC 553, the court held that cutting franchisee's supplies off is breach of contract and of the duty to perform in good faith warranting punitive damages. This case update reports on the court's decision and analysis.

Franchise Law, Student Forum

Franchising in Canada - 2019 Year in Review

  • February 18, 2020
  • John Clifford, W. Brad Hanna, Adriana Rudensky, Mitch Koczerginski, Andae Marrocco and Paola Ramirez

In this update we highlight key judicial decisions and legislative developments in 2019 affecting the landscape of franchise law in Canada.

Franchise Law, Student Forum

Updates to the Arthur Wishart Act Anticipated Following Public Consultation

  • December 09, 2019
  • Clark Harrop, partner at Dale & Lessmann LLP

Coming on the heels of the OBA Franchise Section's November 19, 2019 dinner program "If I Could Revise the Franchise Laws in Canada", the Ministry of Government and Consumer Services recently completed a public consultation process for proposed changes to the regulations under the Arthur Wishart Act (Franchise Disclosure), 2000, SO 2000, c 3 (the “AWA”). This article reviews some important anticipated changes.

Franchise Law, Student Forum

Franchisees Cannot Claim Statutory Damages For Misrepresentation When a Franchisor Voluntarily, But Without Obligation, Provides a Disclosure Document

  • August 02, 2019
  • W. Brad Hanna

The Ontario Superior Court recently confirmed that a franchisee is not entitled to sue for damages under s. 7 of the Arthur Wishart Act (Franchise Disclosure), 2000, S.O. 2000, c. 3 (the “AWA”) when a franchisor voluntarily, but without obligation under s. 5 of the AWA, provides a disclosure document that contains misrepresentations. The decision in 2101516 Ontario Inc. v. Radisson Hotels Canada Inc., 2019 ONSC 3302 is good news for franchisors.

Franchise Law, Student Forum

Revisiting Reasonableness: How Changing Business Circumstances can Impact the Enforceability of Restrictive Covenants

  • June 12, 2019
  • Stephanie Sugar, McCarthy Tétrault LLP

Restrictive covenants, particularly non-compete clauses, are regular features in franchise agreements. When franchise agreements often span many years, facts and circumstances may change with a franchisor’s reorganization, expansion of the franchise system, assignment of franchises, and any other number of factors that change the landscape within which the franchise agreement must be interpreted.

Franchise Law, Student Forum

Supreme Court of Canada Confirms Arbitration Clauses and the Exclusion of Class Actions are Enforceable Against Businesses Claims

  • June 01, 2019
  • Suhuyini Abudulai, Tim Pinos, Carly Cohen and Colin Pendrith

The Supreme Court of Canada recently held, in its highly anticipated decision in Telus Communications Inc. v. Wellman, that business customers of Telus cannot avoid the terms of a mandatory arbitration clause by joining a class action with consumers who are not bound by the arbitration clause.

Franchise Law, Student Forum

Employee or Franchisee (Independent Contractor)? Definitive guidance from the Supreme Court of Canada

  • May 31, 2019
  • David N. Kornhauser (corporate counsel) and Izak C. Rosenfeld (articling student), Macdonald Sager Manis LLP,

In a recent decision of the Supreme Court of Canada, the analysis of whether an individual is considered an employee or independent contractor is given a thorough review, and brings into question the interplay of previous cases that have considered the nature of this relationship in a franchise context.

Franchise Law, Student Forum