Articles - Focus on Franchising

Class Members Can Openly Debate Opting Out Without Invalidating Opt Out Period

"How much is the initial franchise fee?" "What's the royalty rate?" These questions are, almost invariably the first two asked by any prospective franchisee when exploring franchise systems to buy into.

Courts and administrative tribunals are generally sensitive to the vulnerability of employees in employment relationships due to the often unequal bargaining power between employers and most employees.

Franchising has become big business in Canada. According to the Canadian Franchise Association website, franchise businesses account for 40% of all retail sales in Canada and there are over 78,000 franchise units across Canada...

In Sirianni et. al. v. Country Style Food Services Inc. et. al., 2012, the Ontario Superior Court discussed the applicability of the disclosure requirements of Arthur Wishart Act (Franchise Disclosure), 2000.

Two recent cases demonstrate the differing results that can follow when claiming damages for breach of the duty of fair dealing in Section 3 of the Arthur Wishart Act (Franchise Disclosure), 2000 compared to claimimg punitive damages.

In Ontario Inc. v. Philthy McNasty’s (Enterprises) Inc., Justice Whitaker held that the limitation period for a claim of compensatory rescission damages starts to run at the point the franchisee knows the franchisor will not be honouring a claim for damages.

Courts and administrative tribunals are generally sensitive to the vulnerability of employees in employment relationships due to the often unequal bargaining power between employers and most employees.

Canada’s new anti-spam legislation (“CASL”) will change the way businesses conduct electronic marketing campaigns.

The physical premises from which a franchised business operates will, in many circumstances, have a direct impact on the financial success of the business and, by extension, the franchise system.