Articles - Focus on Franchising

About ArticlesLes articles ci-dessous sont publiés par la Section du droit des franchises de l'Association du Barreau de l'Ontario. Les membres sont invités à soumettre des articles.  A propos des articles.

Rédacteurs : Melissa Won

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Court Finds that Franchisee Took Commercially Reasonable Steps to Dissociate from Franchisor

  • 20 février 2021
  • Steven Goldman and Alana Spira

When the franchise relationship comes to an end, ensuring dissociation from the franchisor while continuing on with business can present challenges. In this case the Court dealt with a dispute as to whether there had been dissociation per the parties' agreement, and provides guidance on what constitutes commercially reasonable efforts.

Droit des franchises, Student Forum

Penalty Clauses and Liquidated Damages Provisions in Franchise Agreements

  • 26 janvier 2021
  • Adrienne Boudreau and Jason Brisebois, Sotos LLP

Penalty and liquidated damages clauses may seem like an attractive option in the contractual legal toolkit for franchise agreements. However, there are potential drawbacks and drafting considerations to keep in mind. This article provides an overview of these clauses, their benefits, and thoughts on their utility in the franchise context.

Droit des franchises, Student Forum

A Deeper Dive on the New Wishart Act Amendments

  • 19 octobre 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.

Droit des franchises, Student Forum

When is a Notice of Rescission a Notice of Rescission?

  • 30 juillet 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.

Droit des franchises, Student Forum

Fit for Rescission?

  • 13 mai 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.   

Droit des franchises, Student Forum

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

  • 10 mars 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.

Droit des franchises, Student Forum

Franchising in Canada - 2019 Year in Review

  • 18 février 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.

Droit des franchises, Student Forum

Updates to the Arthur Wishart Act Anticipated Following Public Consultation

  • 09 décembre 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.

Droit des franchises, Student Forum

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

  • 05 novembre 2019
  • 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 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. is good news for franchisors.

Droit des franchises, Student Forum