The recent decision in 2483038 Ontario Inc. v. 2082100 Ontario Inc., confirms a narrow point of franchise law, namely that an unsigned certificate in a Franchise Disclosure Document continues to constitute a “fatal flaw”, despite the Ontario Court of Appeal’s decision in Raibex Canada Ltd. v. ASWR Franchising Corp. The decision also clarifies the liability of “franchisor’s associates”.
One of the main features under the Franchises Act has been the implementation of a Franchise Disclosure Document. The Franchise Disclosure Document is intended to summarize all material facts regarding the franchise.
Established in 1995, First Reference Inc. (known as La Référence in Quebec) provides Canadian organizations of any size with practical and authoritative resources to help ensure compliance.