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Consumer & Retail Advisor

Tag Archives: Franchise

Changing Workplaces Review – Final Report: Potential Impact on Franchises

Posted in Employment and HR, Franchising

The Final Report has just been released for the Changing Workplaces Review, containing recommendations for legislative changes to Ontario’s Employment Standards Act, 2000 and Labour Relations Act, 1995.  A number of changes are either specific to franchises or may have an impact depending on the sector of the franchise and the way the franchise operates. Here we have summarized recommendations that are most relevant franchisors.

Recommendations concerning the Ontario Labour Relations Act, 1995 (“LRA”):

  1. Broader Based Bargaining: The Final Report recommends that the Ontario Labour Relations Board be given certain powers to implement a model of centralized bargaining,
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Alberta Extends Mature Franchisor Exemption to 2021

Posted in Consumer Protection, Franchising, Legislation, Retailing

The Alberta government has recently decided to extend its Mature Franchisor Exemption under the Franchises Act until its next review in 2021. Under the Franchises Act Exemption Regulation, large franchisors meeting certain financial thresholds and holding a high level of operational experience are exempt from including financial statements as part of their Franchise Disclosure Document to prospective franchisees. In extending this exemption, the Alberta government has kept its legislation consistent with other provincial franchise legislation. Going forward, this move should help Alberta to remain attractive to franchise system investors.… Continue Reading

Ontario Court Allows Franchisor to Rely on Buy/Sell Exemption to Disclosure and Enforces Restrictive Covenant

Posted in Franchising, Transactions

In MEDIchair LP v. DME Medequip Inc. (“MEDIchair”), the Ontario Superior Court of Justice (the “Court”) considered whether a restrictive covenant contained in a franchise agreement is enforceable by a franchisor, MEDIchair LP (the “Franchisor”) against its corporate franchisee, 2169252 Ontario Inc. (“216”) and its two principals, Allison Rolph and Ron Seiderer (collectively, the “Respondents”).The Court also considered circumstances where a franchisor may rely on the exemption set forth in Section 5(7)(a)(iv) of the Arthur Wishart Act (Franchise Disclosure), 2000 (the “Act”) to avoid the disclosure obligations … Continue Reading

The Lens of Commercial Reality: Lessons to be Learned from the First Common Issues Franchise Trial

Posted in Class Action, Franchising, Litigation

The recent common issues trial in Trillium Motor World Ltd. v. General Motors of Canada Ltd. contains some interesting lessons for future cases involving system changes, in particular the court’s recognition that challenges to franchisor decisions on system-wide issues must be examined through the lens of “commercial reality”.  Below is a link to a short article which provides a concise discussion of this case.

http://www.lawtimesnews.com/201509074901/focus-on/focus-gm-ruling-offers-a-lot-of-fodder-for-franchise-class-actionsContinue Reading

Ontario Court Stays Franchisees’ Class Action in Favour of Arbitration Clause in Franchise Agreement

Posted in Franchising, Legislation

In 1146845 Ontario Ltd. v. Pillar to Post Inc., 2014 ONSC 7400, the Ontario Superior Court of Justice stayed a class action brought by plaintiff franchisees against the franchisor in favour of an arbitration clause in the franchise licensing agreement.

The plaintiff franchisees alleged, among other things, that the defendant franchisor made improper changes to the franchise system and failed to comply with the disclosure requirements of Ontario’s Arthur Wishart Act (Franchise Disclosure). The alleged change to the franchise system was conversion from an exclusive territory system to a non-exclusive territory system. The plaintiff franchisors brought a … Continue Reading

A Commentary on a Recent Development in Ontario’s Franchise Legislation

Posted in Franchising

The following Canadian Appeals Monitor post by Hovsep Afarian may be of interest to readers of this blog:

A Commentary on a Recent Legal Development in Ontario’s Franchise Legislation

The Supreme Court of Canada denied leave to appeal this week in one case of interest to Canadian businesses.

In Springdale Pizza Depot Ltd. et al v. 2189205 Ontario Inc. et al, the Supreme Court of Canada  declined to grant leave to appeal from an Ontario Court of Appeal decision which addressed the availability of the right of set-off in the context of a statutory right of rescission in Ontario’s … Continue Reading