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Franchise lease disclosure problems under the Wishart Act

Wednesday, May 24, 2017 @ 9:22 AM | By Ben Hanuka

The recent decision of the Ontario Superior Court of Justice in Raibex v. ASWR Franchising has made waves throughout the franchise community since its release in September 2016. The decision granted to the franchisee a rescission of its purchase of a franchised restaurant under Ontario’s franchise disclosure legislation, the Arthur Wishart Act (Franchise Disclosure), 2000 (the Wishart Act), on the basis that the franchise disclosure document (FDD) was materially deficient.

There were several grounds for the finding that the FDD was materially deficient. The most notable...