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Rescission under Ontario’s Arthur Wishart Act (Franchise Disclosure), 2000, and comparable franchise disclosure legislation in other provinces, is a dramatic remedy. It entitles a franchisee to compensation of all his or her investment in the franchised business. This includes the purchase price of the franchised business, the cost of setting it up, the cost of inventory and supplies, all royalties and franchise payments paid to the franchisor, and all losses that the franchisee incurred in the operation of the franchised business.
Introduction A franchisor has a right to preserve the value of the franchised business, even in a rescission case.
There are significant differences between a claim for rescission and a claim for misrepresentation under the Arthur Wishart Act (Franchise...
The recent Springdale Pizza decision of the Ontario Superior Court of Justice, released on June 6, 2014 (see 2147191 Ontario Inc. v.
This part of the Law Works Disclosure Document Primer Series explains in more detail the “material facts” requirement.
Watch this short video with Ben Hanuka outlining the problem with inexperienced startup franchisors, including lacking disclosure of material...
This part of the Law Works Disclosure Document Primer Series examines the projections, all agreements, leasing information and franchisor’s...
This part of the Law Works Disclosure Document Primer Series examines the franchisor’s certificate, financial statements and setup costs...