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Franchising

22 September 2020
Bruno Floriani Surprise! Rescission notice can be served in a pleading

Canada - Lapointe Rosenstein Marchand Melançon LLP

Ontario's Arthur Wishart Act (Franchise Disclosure) requires franchisors to provide adequate pre-contractual disclosure to potential franchisees, failing which a franchisee may be entitled to rescind its franchise agreement. When properly invoked, rescission by a franchisee imposes extensive obligations on the franchisor. The Ontario Court of Appeal recently dealt with the issue of whether a notice of rescission of a franchise agreement is valid if it is contained within a pleading.

Authors: Bruno Floriani, Marissa Carnevale, Tanya Nakhoul
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