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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Severance in the Franchise World: The Cora Restaurants Decision

  • July 07, 2015
  • Tanya Walker and Andrew Ostrom

In 2176693 Ontario Ltd. v. Cora Franchise Group Inc., the Ontario Court of Appeal addressed the issues of the enforceability of a franchise agreement clause which purported to require the franchisee to provide a general release to the franchisor and the application of the doctrine of severability in the context of the Arthur Wishart Act (“AWA”).

Franchise Law

An Expansion of the Common Law Duty of Good Faith – The Duty of Honest Performance. The Supreme Court of Canada Decision in Bhasin v. Hrynew

  • November 26, 2014
  • David Kornhauser

The decision of the Supreme Court of Canada in Bhasin v. Hrynew, 2014 SCC 71, which was released on November 13, 2014, deals with the common law duty to perform contracts honestly. It also provides a thorough and reasoned examination of the development of the good faith principle in Anglo-Canadian contract law and will likely be seen as a seminal decision in this area.

Franchise Law

Are Franchisors Joint Employers with Their Franchisees?

  • September 26, 2014
  • Debi M. Sutin

Franchising owes much of its success to the nature of the relationship between franchisor and franchisee. The essence of that relationship is that the franchisor and the franchisee are independent contractors, with separate and distinct obligations, premised on the franchisee having the opportunity to operate, and profit from, its own independent business.

Franchise Law

"Of Course We Make an Earnings Claim in our Disclosure Document, Don't You?"

  • September 25, 2014
  • Arthur J. Trebilcock

An “earnings claim” is any information given by or on behalf of a franchisor to a prospective franchisee from which a specific level or range of actual or potential sales, costs, income or profit of franchisor-owned or franchised outlets may be readily ascertained. Every North American jurisdiction that regulates franchise sales also regulates the use of earnings claims, although some of them use different terms for "earnings claims".

Franchise Law