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.

Franchisor’s associates are governed by the Arthur Act (Franchise Disclosure), 2000, SO 2000, (the “Act”) and can be liable, together with a franchisor, for breaches of the Act.

The definition of “franchisor’s associate” is only vaguely defined and can capture those not intended by the franchisor to be liable.