Canada: Franchising

Franchisees play a crucial role in protecting franchise brands, but how exactly do they help maintain trademark rights? This article explores the legal requirements for trademark...

When franchise disputes arise, the choice of forum and procedure can be as critical as the merits of the case itself. Arbitration clauses in franchise agreements require careful consideration of scope, procedure, and appeal rights under Ontario's Arbitration Act and the Arthur Wishart Act. Understanding the strategic advantages, potential pitfalls, and key drafting considerations can help franchisors and franchisees navigate disputes more effectively while protecting their long-term interests.

Understanding franchisor disclosure obligations under the Arthur Wishart Act is crucial for both franchisors and franchisees navigating franchise relationships. The Act imposes rigorous disclosure requirements on franchisors with strict penalties for non-compliance, creating a framework designed to protect franchisee interests. Jennifer Shayko explains these essential disclosure obligations and their implications for franchise operations.

The Ontario Superior Court's decision in EazyFoods Inc. v 615241 Ontario Ltd. examines the consequences when franchisors fail to meet Ontario's rigorous pre-contractual disclosure requirements under the Arthur Wishart Act. This case reveals how deficient financial statements, piecemeal disclosure practices, and material omissions can expose franchisors to substantial rescission damages when franchise relationships deteriorate.

On June 30, 2026, The Franchise Disclosure Act, SS 2024, c 13 (the "Act") and The Franchise Disclosure Regulations, SR 29/2025 (the "Regulations") come into force in Saskatchewan.

The concept has been tested. The brand is established. The Canadian market appears attractive. The decision to move forward is often driven by a combination of opportunity and momentum.

In the world of commercial leasing and franchise development, few tools have been as foundational—or as fiercely protected—as the exclusivity clause and the restrictive covenant.

Despite recent political commentary about Canada becoming America's 51st state, our nation remains a sovereign country with its own legal system, rule of law and judiciary.

On June 30, 2026, Saskatchewan will become the seventh Canadian province to bring into force franchise disclosure legislation, joining Alberta, British Columbia, Ontario, Prince Edward Island, New Brunswick, and Manitoba.