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Log In / Register | Mar 18, 2010
Paul Jones's picture

Franchisors Affected by Canadian Competition Act Amendments

Last February there was a showdown in Canada's House of Commons regarding the Budget, which ended with the opposition eventually supporting the government’s Budget.

Paul Jones's picture

Franchise Rescission in Ontario; The Purpose of Disclosure

Back in August, 2008 I reported on the decision of the Ontario Superior Court of Justice in 4287975 Canada Inc v Imvescor Restaurants. The franchisee paid $15,000.00 to the franchisor before receiving a disclosure document for an upscale restaurant chain.

Paul Jones's picture

Non-Competition Covenants in Canada

The Supreme Court of Canada recently decided a case from Vancouver and said that the non-competition covenant was not enforceable. 

Paul Jones's picture

Canadian Franchise Disclosure Document

Company Officers Must Sign a Certificate on Canadian Disclosure Documents 

In Canada, unlike in the U.S., franchise disclosure documents must include a certificate signed by at least two persons who are officers or directors (Ontario Reg. 581/00 Section 7). 

In the Alberta case of Hi Hotel LP v. Holiday Hospitality Franchising Inc., 2007 ABQB 686 released December 21, 2007 the U.S. based franchisor delivered a disclosure document, but did not deliver the signed certificate.

When a dispute arose between the franchisor and the franchisee within the two year limitation period the franchisee delivered a rescission notice.