Franchise Disputes in Ontario

Are you a franchisee who believes important information was withheld or misrepresented before you purchased your franchise? Are you involved in a dispute over franchise fees, royalties, territorial rights, operating requirements, renewal, termination, or the franchisor’s obligations? Or are you a franchisor facing allegations that you breached the franchise agreement or failed to comply with your legal obligations? Franchise disputes can threaten the operation and value of a franchise business, strain an ongoing commercial relationship, and expose both franchisees and franchisors to significant financial consequences.

What affects your rights and remedies

Your rights, obligations, and available remedies may depend on the franchise agreement, Ontario’s Arthur Wishart Act (Franchise Disclosure), 2000, and applicable contractual and common-law principles.

What a franchise dispute may involve

A franchise dispute may involve:

disclosure obligations
alleged deficiencies in a franchise disclosure document
misrepresentation
the statutory duty of fair dealing
interference with the right to associate
royalties and other fees
territorial or exclusivity rights
operating requirements
renewal
termination
other alleged breaches of the franchise agreement

Rescission and statutory deadlines

In some circumstances, a franchisee may have statutory rights to rescind the franchise agreement or claim damages, making the contents and timing of disclosure, the parties’ conduct, and applicable statutory deadlines particularly important.

How Zel Law can help

If a franchise dispute is threatening your franchise relationship or business, speaking with a commercial litigation lawyer early can help you understand the franchise agreement, assess the parties’ contractual and statutory rights, and determine the appropriate way to pursue or defend a claim. Zel Law’s litigation lawyer has experience with franchise disputes. Book a consultation to discuss the franchise agreement, disclosure documents, financial records, notices, correspondence between the parties, and the legal options that may apply.

Related disputes

This is part of Zel Law’s business & commercial litigation practice in Ontario. For how fees work, see our flat-fee options.