KLF acts for both franchisors and franchisees across a range of franchise systems in Ontario. The franchise relationship is governed by a distinct statutory and common law framework, and franchise disputes present unique legal and commercial considerations. Clients on both sides of the franchise relationship turn to KLF for practical, experienced advice.
Ontario's Arthur Wishart Act imposes disclosure obligations on franchisors and establishes franchisee rights that cannot be contracted out of. KLF advises franchisors on compliance with their disclosure obligations and assists franchisees in evaluating the adequacy of disclosure they have received. Failure to comply with disclosure requirements can give rise to the statutory right of rescission, which carries significant financial consequences.
KLF advises on the preparation, review, and adequacy of franchise disclosure documents. For franchisors, we assist with the preparation of compliant disclosure documents. For prospective franchisees, we review disclosure packages and advise on the legal and commercial implications of the franchise relationship before the client makes a financial commitment.
KLF is regularly instructed in franchise disputes arising from terminations, non-renewals, territorial violations, system standard enforcement, and breach of the duty of good faith and fair dealing. These disputes require an understanding of both the statutory framework and the specific terms of the franchise agreement. KLF acts in franchise litigation in the Ontario courts and in arbitration proceedings.
Where a franchisor has failed to provide a disclosure document, or where the disclosure document is materially deficient, a franchisee may have the right to rescind the franchise agreement under the Arthur Wishart Act. KLF advises franchisees on potential rescission rights and acts in rescission proceedings, and advises franchisors in responding to rescission demands.
KLF acts on the purchase and sale of franchise locations and, where appropriate, franchise systems. These transactions require attention to franchisor consent and transfer rights, disclosure obligations, and the allocation of liabilities between buyer and seller.
Every matter begins the same way: conflicts and intake completed first, then a candid read of the position, then a focused plan for resolution. The steps are the same whether a file settles or is tried.
The Act requires franchisors to provide a disclosure document at least 14 days before signing. If disclosure is deficient or not provided, franchisees may have the right to rescind the franchise agreement and recover their investment.
Termination rights depend on the specific terms of your franchise agreement and applicable law. Grounds may include franchisor breach, inadequate disclosure, or mutual agreement. We can review your agreement and advise on your options and exposure.
No forms required. We complete conflicts and intake before we act, so please do not send confidential details about a franchise matter until we have confirmed we can.
Contacting us does not create a solicitor-client relationship. We must complete our conflicts and intake processes before we can act for you. Do not send confidential information through this form until we have confirmed we are able to act.
