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


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

  • 02 août 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.

Droit des franchises, Student Forum

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

  • 12 juin 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.

Droit des franchises, Student Forum

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

  • 01 juin 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.

Droit des franchises, Student Forum

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

  • 31 mai 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.

Droit des franchises, Student Forum

Franchisor's Associates

  • 13 mars 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.

Droit des franchises, Student Forum

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

  • 04 février 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.

Droit des franchises, Student Forum

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

  • 13 janvier 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.

Droit des franchises, Student Forum


  • 08 avril 2018
  • John Polyzogopoulos

Topics covered this week included franchise law and rescission, liability for wrongful patent enforcement, the duty to defend in the MVA context, family law (custody and access and breach of court orders), securities class actions, and mortgage enforcement. John Polyzogopoulos

Litige civil, Droit de la famille, Droit des franchises et 4 en plus, Technologies de l'information et le droit de la propriété intellectuelle, Droit des assurances, Droit international, Droit immobilier

Ontario Court Revisits Disclosure of Leases in Recent Decision

  • 13 juin 2017
  • Pam Vermeersch

In a relatively recent decision, 2212886 Ontario Inc. v. Obsidian Group Inc., the Ontario Superior Court of Justice found that a franchisee of the Crabby Joe's system was entitled to rescind its franchise agreement due to "significant and material" omissions in the franchisor's disclosure document. Interestingly, the absence of a copy of the head lease for the business premises did not form a basis for rescission, in the court's view.

Droit des franchises