Leading Canadian
FRANCHISE & BUSINESS LAW FIRM

341 Pizza (Ahmed)

Full Case Name: Ahmed v. 3 for 1 Pizza & Wings (Canada) Inc. (2004)

This court decision was among the earliest reported franchise disclosure decisions after the passage of Ontario’s franchise legislation, the Arthur Wishart Act (Franchise Disclosure), 2000.

It was the first Ontario decision that defined the term “franchise agreement” to include an agreement between a sub-franchisor and a sub-franchisee, requiring the delivery of a disclosure document.

The franchisor attempted to circumvent the disclosure requirements under the Act by structuring the arrangement as a “management agreement” (rather than a franchise agreement) with a “manager” (rather than a franchisee).

The Ontario Superior Court of Justice held that the so-called “management agreement” contained the components of a franchise relationship under the Act, and that therefore it was a “franchise agreement” under the definition of the Act; and the “manager” was a “franchisee” under the Act.

As a result, the court held that the franchisor failed to provide to the franchisee a disclosure document, entitling the franchisee to a rescission of the arrangement and compensation for all his losses.

Back

Franchise Law Blog

Court of Appeal for Ontario Provides...

Posted by | 14 June 2017

Authors: Evan Ivkovic and Jeff Nguyen, Students-at-Law, Law Works P.C. Read More

Franchise-Lease Disclosure Problems...

Posted by | 25 May 2017

This article, written by Ben Hanuka, originally appears in the May 31, 2017, issue of The Lawyers Daily. Click here to view the full article. Read More

Court of Appeal denies GM security for...

Posted by | 23 May 2017

By Ben Hanuka This decision of the Court of Appeal from September 2016, dealt with a motion by General Motors of Canada Ltd. Read More

View All

What’s New

Law Works Expanding to British...

We are pleased to announce that on June 2, 2017, Ben Hanuka was called (admitted) to the British Columbia Bar at an official Call to the Bar ceremony of the Law Society and... Read More

Article in The Lawyers Daily: ...

This article, written by Ben Hanuka, originally appears in the May 31, 2017, issue of The Lawyers Daily. Click here to view the full article. Read More

Law Works and Ben Hanuka in Ca...

      We are pleased to announce that both our firm, Law Works PC, and our principal lawyer, Ben Hanuka, have been selected to be listed in the... Read More

View All

Request Information

Please select the TRIANGLE and click the SUBMIT button

 Please wait...