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.
BackBy: Mandana Niknejad, Law Works Editor: Ben Hanuka, Law Works In 2619506 Ontario Inc. v. 2082100 Ontario Inc. Read More
By: Mandana Niknejad, Law Works Editor: Ben Hanuka, Law Works In 2483038 Ontario Inc. v. Read More
By: Mandana Niknejad, Law Works Editor: Ben Hanuka, Law Works In 2611707 Ontario Inc. v. Read More
The July 2022 issue of our Franchise Law newsletter features articles about three recent decisions of the Court of Appeal for Ontario. Read More
We are pleased to announce that our upcoming 90-minute live webinar "Advising About Franchise Rescission Rights – Lawyers’ Obligations" has been accredited by the Law... Read More
Law Works P.C. (Toronto)/L.C. (Vancouver) is a small franchise and commercial dispute resolution boutique in Ontario and British Columbia. Read More