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Appeal court stresses importance of full disclosure in franchise agreements

Thursday, June 15, 2017 @ 8:39 AM | By Amanda Jerome

The Ontario Court of Appeal has ruled that a motion judge erred in determining a franchisor gave sufficient disclosure to a franchisee in the sale of an Active Tire franchise. The Court of Appeal decided that the franchisee is entitled to rescind the agreement as they were not provided a complete disclosure document.

Milton Davis, Fogler, Rubinoff LLPIn Mendoza v. Active Tire & Auto Inc. 2017 ONCA 471, the court heard that the appellants, Francisco Yao Mendoza and Francis Mendoza Inc., purchased an Active Tire franchise...