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|Ontario Court Rules there is No “Material Change” Where the Franchisee Had Knowledge of Changes|
Stefanie Holland; Cassels Brock & Blackwell LLP;
October 17, 2013, previously published on October 2013In 1201059 Ontario Inc. and Pizza Pizza Limited, the Ontario Superior Court of Justice addressed the disclosure obligations of a franchisor in the context of the renewal of a franchise agreement when the franchisee is required to incur substantial renovation costs to its business premises. In this...
|Alberta Court Reminds Franchisors of the Importance of a Properly-Signed Disclosure Certificate|
Rebecca Valo; Cassels Brock & Blackwell LLP;
October 17, 2013, previously published on October 2013The recent case of 1448244 Alberta Inc. v Asian Concepts Franchising Corporation (“Asian Concepts”), a decision of the Court of Queen’s Bench of Alberta, serves as a reminder of the importance of technical compliance with the disclosure requirements in Canada, particularly those...
|Ontario Court Grants Statutory Rescission for Multiple Disclosure Failures|
Christopher Horkins; Cassels Brock & Blackwell LLP;
October 17, 2013, previously published on October 2013In March 2013, the Ontario Superior Court of Justice released a new rescission remedy decision that underscores the serious consequences resulting to franchisors from deficiencies in their disclosure documents required under Ontario’s Arthur Wishart Act (“the Act”).
|Ontario Superior Court of Justice Enforces Non-Competition Covenant against Former Franchisee, Her Spouse, and Their Corporate Alter Ego|
Eric Mayzel; Cassels Brock & Blackwell LLP;
October 17, 2013, previously published on October 2013In Pet Valu Canada Inc. v. 1381114 Ontario Limited, the Ontario Superior Court of Justice granted Pet Valu’s motion for an interim injunction to prevent the operation of a competing business by a former franchisee, its principal, the principal’s husband, and their corporate alter ego....
|Midas Franchisee Class Action Settled; Court Comments on “Development” in Jurisprudence Regarding Fair Dealing Claims|
Derek Ronde, Geoffrey B. Shaw; Cassels Brock & Blackwell LLP;
October 17, 2013, previously published on October 2013Over four years after the certification of the case as a class proceeding, and over six years after the action was commenced, the Ontario Superior Court of Justice approved a settlement of the class action brought on behalf of Midas franchisees against their franchisor regarding 2003 changes to the...
|Use of a Computer Inventory Control System Based On a Franchise Agreement - Franchise Law|
Michael Rainer, Michael Rainer; GRP Rainer LLP;
October 8, 2013, previously published on October 8, 2013The right to use a computer inventory control system depends in particular on the provisions of the franchise agreement and any amendments thereto.
|Seven Strategic Steps to Avoid Franchisor Liability|
Susan E. Wells; Jaburg & Wilk, P.C.;
October 2, 2013One of the hallmarks of franchising is consistency of the brand and operations across the franchise system. If well executed, that consistency gives the public the impression that the franchise system is a centrally-owned operation. Most people don’t know the difference between business...
|Attention Auto Dealers: What Constitutes Good Cause to Terminate Your Dealership Agreement?|
McDonald Hopkins LLC;
September 25, 2013, previously published on September 23, 2013Under Ohio law, a franchisor must have “good cause” in order to terminate a motor vehicle franchise. That good cause cannot include the failure to achieve any unreasonable or discriminatory performance criteria. In order to comply with the law, the Japanese auto manufacturer Nissan...
|Survival of the Fittest: Why Do Some Franchise Systems Survive When Other Fail?|
Corby Cochran Anderson, Ted P. Pearce; Nexsen Pruet, LLC;
August 29, 2013, previously published on August 2013What had 28 flavors, nearly 1,000 locations, and a ubiquitous orange roof? If you answered Howard Johnson's Restaurants, then you are one of a dwindling number of people who can still appreciate the power that brand once had. At one time, Howard Johnson's was the largest restaurant chain in the...
|California: Withholding Voluntary Compliance Program Provides Benefits to Those with Past-Due Taxes|
McDonald Hopkins LLC;
August 24, 2013, previously published on August 22, 2013The California Franchise Tax Board (FTB) recently began a program to provide relief to those who qualify with past-due nonwage withholding taxes, called the Withholding Voluntary Compliance Program (WVCP).