McCarthy Tétrault’s Franchise & Distribution Group is pleased to provide the 2015 Year in Review, gathering articles written by our lawyers in the past year about developments in Canadian law that may be of interest to franchised businesses.
This release includes four sections. Please click on the links below to go directly to a specific section:
For more information please contact the Group's Co-Chairs, Adam Ship or Helen Fotinos.
STATUTORY DISCLOSURE ISSUES
Ontario Court Allows Franchisor to Rely on Buy/Sell Exemption to Disclosure and Enforces Restrictive Covenant
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…→
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Ontario Superior Court of Justice Finds that Shareholders of a Franchisee are not “Franchisees” within the Meaning of the Arthur Wishart Act
FDD Exemptions in Canadian Franchise Legislation: Court Confirms Narrow Application
In an earlier
post, we discussed the
Brister v.
2145128 Ontario Inc. case of the Ontario Superior Court of Justice (the “
Brister Post”), which discussed the exemptions under the
Arthur Wishart Act (Franchise Disclosure), 2000 (the “
Act”)…→
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The Resale Exemption in Franchise Legislation: Court Confirms Narrow Application
Ontario Court of Appeal Again Narrowly Interprets the Resale Exemption in Ontario’s Franchise Legislation
Franchise Update – Court of Appeal Considers Scope of Basket-Clause Disclosure of Material Facts under Ontario Franchise Legislation
The Ontario Court of Appeal Finds Franchise Disclosure Document Fatally Deficient
Franchise Legislation Introduced in British Columbia
British Columbia does not currently have any special franchise legislation. In late 2014, the Government of B.C. sought submissions from interested stakeholders on the question of whether B.C…→
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A Healthy Debate, Revisited: Amendments to Ontario’s Proposed Menu Labelling Legislation from the Perspective of Franchisors
Earlier this year, the Legislative Assembly of Ontario resumed its debate of Bill 45, an act aimed at enhancing public health by enacting, among other statutes, the Healthy Menu Choices Act, 2015 (the “Act”)…→
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LEGISLATIVE DEVELOPMENTS
BC Government Seeks Input on Franchises Act (Disclosure) Regulation
As we recently wrote about
here and
here, BC will soon become the sixth Canadian province to enact uniform franchise legislation. On October 20, 2015, Bill 38 –
Franchises Act passed Third Reading in the BC Legislature. The Provincial Government is now seeking input …→
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Bill 38 – Franchises Act Passes Third Reading in BC
On October 6, 2015 the B.C. Provincial Government introduced
Bill 38 – Franchises Act in the Provincial Legislature. We posted
here, discussing the Bill’s primary contributions to the law governing franchises in B.C…→
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BC Tables Bill 38 – Franchises Act
In recent years, British Columbia has been laying the groundwork for the introduction of franchise legislation in this province. We have posted about these initiatives on various occasions, including
here and
here…→
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Changes to transfer pricing policy create opportunities and obligations for importers
The transfer pricing policy recently adopted by Canada Border Services Agency provides new obligations for importers of goods subject to duty-free treatment but also creates the opportunity, under certain circumstances, for importers of goods to claim a refund of custom…→
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A Healthy Debate: The Second Reading of Ontario’s Menu Labelling Legislation
On February 17, 2015, the Legislative Assembly of Ontario resumed its debate of Bill 45, the
Healthy Menu Choices Act, 2014 (the “Act”). The Act was introduced on November 24, 2014, as part of the province’s strategy to reduce childhood obesity and overall…→
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Amendments to the Guarantees Acknowledgment Act (Alberta) and Its Impact on Franchise Transactions in Alberta
Effective April 30, 2015, the new
Notaries and Commissioners Act (“
NCA”) comes into force in Alberta. As discussed in
the newsletter dated April 20, 2015, the NCA contains certain consequential amendments to the
Guarantees Acknowledgment Act (Alberta)…→
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OTHER CASE LAW DEVELOPMENTS
Ontario Court of Appeal Dismisses Pet Valu Class Action, Clarifies the Scope of the Duty of Good Faith and Fair Dealing and Calls for Greater Judicial Restraint
Ontario Court Grants Injunction to Protect Franchisor from Rogue Franchisees
Ontario Court Denies Leave to Appeal for Addison Chevrolet
On October 30, 2015, the Divisional Court dismissed a motion brought by the Plaintiff franchisees for leave to appeal the decision of the Ontario Superior Court of Justice in
Addison Chevrolet Buick GMC Ltd. v. General Motors of Canada Ltd. In that decision…→
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Ontario Court Stays Franchisees’ Class Action in Favour of Arbitration Clause in Franchise Agreement
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…→
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The Lens of Commercial Reality: Lessons to be Learned from the First Common Issues Franchise Trial
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...→
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Not Everyone is a Party: Some Comfort for Foreign Franchisors
Québec Court of Appeal Recognizes Implied Obligations in Franchise Agreement: What Does This Really Mean?
Ontario Court of Appeal refuses to read down or sever general release clause in franchise agreement
The Ontario Court of Appeal recently upheld a decision (which
initial decision we wrote about
here) striking down a general release clause in a franchise agreement, even though the franchisor sought to be released from non-statutory claims only…→
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Ontario Court Endorses Single Forum for National Dealer Network Dispute
The Court of Appeal of Québec Declares Valid a Perpetual Renewal Clause
Update: Dunkin’ Donuts on its way to the Supreme Court of Canada
Ontario Court Upholds Restrictive Covenants In Franchise Agreement
Franchise agreements often contain covenants restricting the activities of a franchisee both during the term of the franchise agreement and for a period afterwards…→
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GENERAL TOPICS OF INTEREST
McCarthy Tétrault Continuing Professional Development Day: The year in review in the fields of consumer goods, retailing and franchising in Québec
McCarthy Tétrault multidisciplinary teams working in the fields of consumer goods, retailing, franchising and distribution are hosting a luncheon during which we will discuss the developments of particular interest for Québec retailers in 2015…→
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Prepare to Launch – Part 1: Insights from Vancouver Start-up Week
Readers that are in the early stages of their business or approaching a growth phase may find this
post by Genevieve Pinto and Maureen Gillis sharing insights from our recent Vancouver Start Up Week
Prepare to Launch panel event to be of interest…→
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Doing Business in Canada: Read the latest updates to our popular guide
McCarthy Tétrault’s Doing Business in Canada is an indispensable reference tool for lawyers and business persons regarding the legal aspects of establishing or acquiring a business in Canada. The newest edition reflects legislative changes including:...→
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