In our February newsletter, we highlighted a recent decision from the Ontario Court of Appeal, 2189205 Ontario Inc. v. Springdale Pizza Depot Ltd. The key take-away from that case was that a franchisor must provide a complete and specific disclosure document to a potential franchisee or face harsh remedies, including the potential for a profitable franchisee to rescind their franchise agreement and keep the profits.

The franchisor’s application to the Supreme Court of Canada for leave to appeal the decision was dismissed in March of this year.