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The recent Springdale Pizza decision of the Ontario Superior Court of Justice, released on June 6, 2014 (see 2147191 Ontario Inc. v. Springdale Pizza Depot Ltd., 2014 ONSC 3442), is yet another in a line of consistent cases addressing a franchisor’s active involvement in a resale between a former franchisee seller and new franchisee purchaser. Consistent with earlier Ontario cases, the court ruled that based on the facts of the case, the franchisor was actively involved in the resale process.
The Ontario Superior Court of Justice released a decision in January 2014, involving Cora Franchise Group, 2176693 Ontario Ltd. v.
When a franchisees is in financial distress and looks to either close shop or otherwise get out of the franchised business, a franchisor often...