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Franchise misrepresentation provision won’t stay dormant for long

Wednesday, December 06, 2017 @ 9:51 AM | By Ben Hanuka

Franchise jurisprudence in Ontario is steadily leaving its infancy years behind. Yet most cases about pre-sale disclosure are based on one, albeit vital, statutory cause of action: rescission.

The other key statutory cause of action that relates to pre-sale disclosure — “misrepresentation/failure to comply with disclosure obligations” — has been so far mostly dormant. There appears to be lack of appreciation of the role that this provision can have in the developing jurisprudence of pre-sale franchise disclosure claims in Canada.

The misrepresentation/failure to comply with disclosure...