Recent Blog Posts

Compliance, not reliance: Ontario Court of Appeal again emphasizes importance of disclosure document compliance

Jean-Marc Leclerc

Published June 9, 2017

In a series of cases decided over many years, the Ontario Court of Appeal has emphasized and re-emphasized the importance of complying with the technical rules of the Arthur Wishart Act (Franchise Disclosure), 2000, prescribing the contents of a franchise disclosure document.

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CASL Private Lawsuit Suspension: what does it mean?

Mohsen Seddigh

Published June 8, 2017

The Government of Canada temporarily suspended the implementation of certain provisions in Canada’s anti-spam legislation (“CASL”) that create a private right of action.

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Recommended changes to Ontario Labour law could open the door to more unionization in franchise sector

Louis Sokolov

Published May 25, 2017

On May 23, 2017, the Ontario government released the final report prepared as part of its Changing Workplace Review. This report follows a two-year process aimed at modernizing Ontario’s employment and labour laws, to address developments in industry and workplaces over the last two decades.

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Releasing Unknown Claims: New Guidance from the Ontario Court of Appeal

Adrienne Boudreau

Published May 23, 2017

What happens if you sign a broadly worded, general release to settle an action, only to discover that, years later, a claim you didn’t anticipate comes to light? The new Ontario Court of Appeal decision in Biancaniello v. DMCT LLP (2017 ONCA 386) provides important guidance on this matter and on the interpretation of releases, generally.

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Should Your Quick-Service Restaurant Franchise System Sell Alcohol?

Faye Lucas

Published April 27, 2017

Taco Bell Canada recently announced that it will start selling liquor at certain Canadian locations in an attempt to grab more Millennial market share. Though somewhat atypical for quick-service restaurants, alcohol sales could dramatically increase top line sales for franchise systems. While this would mean higher royalty streams for franchisors, does it make sense long-term?

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Class Action Basics – Why do class actions exist?

Mohsen Seddigh

Published April 25, 2017

With class actions, many people no longer have to suffer in silence because their potential claim is too small to justify a lawsuit. Access to justice is the most important reason for the existence of class actions.

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Franchising a Cannabis Business: What is the Law and Where is it Going?

Marta Jankovic

Published March 27, 2017

If legalization becomes a reality, we can expect storefronts that sell cannabis products (commonly known as dispensaries) to try their hand at franchising their business concepts.

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How do Franchisors Make Money?

Allan Dick

Published February 27, 2017

Franchising is one way of many by which a business can expand. The key ingredient that a business must have that wants to consider expansion through franchising is something that someone would want to license from it to use in the operation of an independently owned business.

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Questions about Disclosure Following the Raibex Decision?

Faye Lucas

Published January 17, 2017

Lawyers are often asked to prepare franchise disclosure documents (“FDDs”) for franchisors prior to a location being secured. Practically speaking, some franchisors do not want to undertake the cost and effort and possible risk of finding and securing a site unless they have a committed franchisee. Franchisors consider franchisees to be committed only once they have signed a franchise agreement or at least paid some initial franchise fee or deposit. While this is a common business scenario, the legal framework is fraught with risk as exemplified by the recent Ontario case, Raibex Canada Ltd. v. ASWR Franchising Corp., 2016 ONSC 5575 (“Raibex”).

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Rescission Insurance: Mitigating Risks For Franchisors

Marta Jankovic

Published January 3, 2017

As the franchise business model continues to flourish across Canada, managing statutory liability risks continues to be a concern for franchisors. Franchisor insurance has long been available to American franchisors. Insurers have recently turned to Canada as a good market for their franchisor insurance products.

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