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

Today
Today

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

Franchisor's Associates

  • March 13, 2019
  • Jonathan Mesiano-Crookston (Goldman Hine LLP), Debi Sutin (Gowling WLG) and Maryam Shahidi (Goldman Hine LLP)

The concept of the “franchisor’s associate” is one of the vaguest concepts under Ontario franchise legislation and one of the most perilous for individuals offering franchises.

Franchise Law, Student Forum

Maintaining Equilibrium: The Supreme Court Defines the Boundaries of Good Faith

  • February 04, 2019
  • Colin Pendrith, Cassels Brock & Blackwell LLP

In the recent decision of Churchill Falls (Labrador) Corp. v. Hydro Québec, the Supreme Court of Canada considered the scope of the duty of good faith to re-write a contract, touching upon the heightened duty that can exist in “relational contracts”, such as franchise agreements.

Franchise Law, Student Forum

A Word of Warning to Franchisors: ADR Provisions May Postpone the Limitation Period for Rescission

  • January 13, 2019
  • W. Brad Hanna, Andrae J. Marrocco, Adriana Rudensky, Mitch Koczerginski, Lauren Ray

In PQ Licensing S.A. v. LPQ Central Canada Inc., the Ontario Court of Appeal considered whether the mandatory mediation process prescribed by a franchise agreement impacted the limitation period applicable to a franchisee’s rescission claim.  The Court found that the franchisee’s claim for rescission was not barred even though the franchisee had delivered its notice of rescission nearly a decade prior.

Franchise Law, Student Forum