News & Publications

Franchising

Franchising in Canada: have the wheels fallen off?

Written by on June 14, 2017.

(Note: This article was also published on AdvocateDaily.com) Introduction Last year was relatively quiet in terms of major (i.e. Court of Appeal) decisions or legislative changes. One interesting, and important, development is the increasing willingness of the courts to decide matters based on summary judgment motions, following the directive of the Supreme Court in Hryniak v. Mauldin. The Obsidian case is a prime example of this trend. Notwithstanding significant issues of credibility...

Unionizing Franchise Locations Could Become Easier Under Proposed Changes to Ontario Law

Written by on May 24, 2017.

The Ontario Changing Workplaces Review has now issued its Final Report, and there’s good news and bad news for franchisors. First, the good news: as we outlined in February, there were concerns that the Final Report would call for expanding the situations where franchisors would be considered the employers of a franchisee’s employees under Ontario’s Employment Standards Act, 2000 (the “ESA”). However, the panel has chosen not to recommend any substantive changes to the “related em...

Raibex decision alters franchise landscape on presale disclosure

Written by on May 04, 2017.

The disclosure obligations for franchisors expanded with a recent Ontario Superior Court of Justice ruling, and will change the way deals are struck in the province, says franchise lawyer Peter Dillon. In Raibex Canada Ltd. v. ASWR Franchising Corp., 2016 ONSC 5575 (CanLII), the judge found the development cost estimate provided to the franchisee was materially deficient and, as such, formed the basis of a valid rescission claim, he tells AdvocateDaily.com. Dillon, a partner with Siskind...

Potential Changes to Employment Legislation May Mean Increased Liability for Franchisors

Written by on February 28, 2017.

The Ontario Changing Workplaces Review’s final report is expected to be delivered in the next few weeks and, if some of the ideas contained in its interim report become law, franchisors may find themselves liable as employers of their franchisees’ employees, regardless of the franchisor’s actual level of control over the workplace. The Review began as a Government of Ontario initiative in early 2015, with the Review’s terms of reference directing two Special Advisors to provide recomm...

Raibex Canada Ltd. v ASWR Franchising Corp., Implications for Franchisors

Written by on January 18, 2017.

Executive Summary and Client Advisory This case, decided late in the late Fall of 2016 and currently under appeal, is potentially highly problematic to franchisors who sign franchise agreements with prospects before a site has been selected. In essence, the trial judge found that doing so is not in compliance with the Ontario’s franchise disclosure law, because the disclosure document provided does not contain all material facts relative to the franchise being sold. Based on the logic...

Franchising – Presale Disclosure Now Mandatory in British Columbia

Written by on January 17, 2017.

For those franchisors offering, or planning to offer, franchises in British Columbia, please take note that effective February 1, 2017, you must now provide a BC-compliant disclosure document to all franchise prospects at least 14 days prior to signing any agreement relating to the franchise, or accepting any payments in respect of the franchise. Although BC's franchise Regulation is substantially similar to that of other provinces, your existing disclosure document must be amended to account...

Franchising An Increasingly High-Risk Venture For Franchisors

Written by on December 06, 2016.

Canada is frequently hyped as an idyllic place to launch a franchise business, but that’s not the case for many franchisors who face tougher obstacles than their counterparts in other countries, says London franchise lawyer Peter Dillon. Compared to the U.S. and other jurisdictions, Canada's legislative history in the area of franchise law makes it “one of the most difficult jurisdictions in the world” in which to franchise, he tells AdvocateDaily.com. Franchising plays an important...

Peter Dillon to co-host free franchise mini-summit in Toronto

Written by on October 13, 2016.

Franchise lawyer Peter Dillon will co-host the Franchise ROI Mini-Summit in Toronto on Oct. 24, in partnership with IFX International Franchise Management. The event, presented by Dillon, partner at Siskinds, and Dan Martin, president and CEO of IFX, will focus primarily on how to produce high performance, coachable franchisees, with a secondary focus on how to generate franchisee buy-in and increase return on investment (ROI). The summit is geared towards emerging and established franchisor an...

Siskinds Franchise Law Group Named Global Leader in Franchise Law

Written by on May 19, 2016.

Congratulations to Peter Dillon and the franchise law group, for being named a Canadian leader in franchise law in the Corporate LiveWire 2016 Global Awards! These awards recognize individuals and companies in the corporate finance sector that have demonstrated great achievements in the past 12 months. Each firm has been put under great scrutiny by the Corporate LiveWire judging panel, recognizing the most client-focused and dedicated teams and individuals. Learn more about the Corporate Live...

2016 Shaping Up To Be ‘Significant’ Year For Franchise Law

Written by on March 21, 2016.

The Supreme Court of Canada is set to hear its first franchise case in more than four decades something that, coupled with significant recent decisions, could bring needed balance to the industry, franchise lawyer Peter Dillon tells AdvocateDaily.com. “If franchise litigation were a wine, then 2015 would be a good year for franchisors,” says Dillon, partner with Siskinds LLP in London, Ont., noting that the Court of Appeal for Ontario sided with franchisors in several high-profile case...