Leading Canadian
FRANCHISE & BUSINESS LAW FIRM

Lick’s Burger (Adlakha v. Meehan)

Full Case Name: Adlakha v. Meehan (2011)

This court decision is among the few Ontario court decisions relating to the enforceability of an arbitration requirement in a franchise agreement. It is the first decision holding that a franchisor’s affiliates, which are not parties to the franchise agreement, may be required to submit to arbitration together with the franchisor – even though they are technically not direct parties to the arbitration agreement.

The franchise agreement contained an arbitration provision, requiring the parties to submit all disputes between them to arbitration.

The franchisees sued not only the franchisor, Lick’s Burger, but also its numerous affiliated entities – none of whom was a party to the franchise agreement. The affiliates took the position that they were not required to submit to arbitration because they were not parties to the franchise agreement, and therefore the arbitration agreement.

The Ontario Superior Court (Commercial List) held that all entities which were alleged to be franchisor’s affiliates were required to submit to arbitration along with the franchisor. There were two main reasons: First, the wording in the franchise agreement consistently referred to the term ‘franchisor’s affiliates’ in association with the term ‘franchisor’. Second, Ontario’s Arbitration Act, 1991, gives an arbitrator broad powers to determine such issues.

Back

Franchise Law Blog

Court Uses Expanded Powers To Grant...

Posted by | 28 April 2017

Author: Gleb Matushansky, Student-at-Law, Law Works P.C.  Editorial Committee: Law Works P.C. Read More

Franchisees Must Not Take Advantage of...

Posted by | 12 April 2017

Author: Jeff Nguyen, Student-at-Law, Law Works P.C.          Editorial Committee: Law Works P.C. Read More

Appeal Court Ruling In Condominium...

Posted by | 3 April 2017

Author: Gleb Matushansky, Student-at-Law, Law Works P.C.           Editorial Committee: Law Works P.C. Read More

View All

What’s New

Arbitration Article in The Law...

We are pleased to announce that The Lawyers Weekly published a new article by Ben Hanuka in its March 31, 2017, issue, titled, "Court Boosts Arbitral Agreements". Read More

Law Works welcomes a new Artic...

Law Works is pleased to welcome a new articling student to the firm. Evan Ivkovic Evan graduated with a J.D. Read More

Ben Hanuka speaks about Commer...

We are pleased to announce that on January 12, 2017, Ben Hanuka presented about commercial arbitration for The Commons Institute’s LawFM Internet radio broadcast series. Read More

View All

Request Information

Please select the DIAMOND and click the SUBMIT button

 Please wait...