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Raibex decision: Ontario Court of Appeal clarifies ‘no disclosure’

Wednesday, January 31, 2018 @ 9:35 AM | By Ben Hanuka

In an important decision released on Jan. 25, 2018, followed closely by the franchise bar, the Court of Appeal for Ontario reversed a controversial decision of a Toronto Superior Court motion judge in Raibex Canada Ltd. v. ASWR Franchising Corp. in favour of the franchisor which operates the AllStar Wings & Ribs franchise.  

The court held that the franchise disclosure document (FDD) did not contain significant enough disclosure deficiencies which, individually or collectively, would amount to no disclosure at all — that the deficiencies were...