- About Us
- Franchise Law
- Business Disputes
- Our Important Court Cases
- What’s New
Full Case Name: Al-Harazi v. Quizno’s Canada Restaurant Corporation (2007)
This was the first Ontario class action based on the disclosure requirements in the Arthur Wishart Act (Franchise Disclosure), 2000.
The class was comprised of about 200 franchisees. Each of them entered into a franchise agreement with Quiznos for a franchised restaurant in Ontario.
None of the approximately 200 franchise agreements resulted in the selection of a restaurant location and construction of a franchised restaurant.
After signing the franchise agreement, each franchisee waited for Quiznos to finalize details about the lease and construction requirements of the location.
The class action sought a refund of the franchise fee on behalf of all 200 class members. Quiznos took the position that, based on the terms the franchise agreement, franchisees were required to finalize leases for their stores on their own.
The class action was framed as a franchise disclosure claim under the Act, rather than as a breach of contract case under the terms of the franchise agreement. The action claimed that Quiznos failed to disclose to franchisees all material information about the leasing and site selection process.
In 2007, the case was settled after an extensive and complex multi-day mediation with a senior judge, at the time Regional Senior Justice Winkler, who later went on to become Chief Justice of Ontario (now retired).
As a class action, the settlement required court approval. After an extensive court hearing, including hearing from various class members, another senior Ontario court judge, Mr. Justice Cullity (now retired), approved the settlement.
The case was extensively covered in the media across Canada, and even in the U.S.
The case had a significant impact in the franchise industry by highlighting to franchisors and their professional advisors the importance of streamlining the site-selection process – both logistically and in the legal disclosure process.Back
This article was originally published in The Lawyer’s Daily as a two-part series on September 23 and 24, 2020. Read More
By: Anthony Pugh, Law Works Editor: Ben Hanuka, Law Works In Spina v. Shoppers Drug Mart Inc. Read More
We are pleased to announce that Ben Hanuka will be moderating a roundtable discussion at Ontario Bar Association’s upcoming annual franchise law conference on November... Read More
We are pleased to announce that Ben Hanuka will be speaking at The Continuing Legal Education Society of British Columbia's upcoming franchise program, Franchise Update 2020,... Read More