What are my rights if a franchisor breaches our franchise agreement in Ontario?

Franchise agreements in Ontario are governed both by the contract itself and by the Arthur Wishart Act (Franchise Disclosure), 2000, which imposes specific obligations on franchisors that go beyond ordinary contract law.

If a franchisor breaches the franchise agreement — for example, by failing to provide promised support, unlawfully terminating the franchise, encroaching on a protected territory, or violating the statutory duty of fair dealing — a franchisee may have claims for breach of contract, breach of the duty of good faith and fair dealing under the Act, and potentially rescission of the entire franchise agreement.

Ontario's Arthur Wishart Act provides franchisees with a right of rescission (cancellation with financial restitution) if the franchisor failed to provide proper disclosure documents before the agreement was signed. Rescission must generally be exercised within specific time limits under the Act.

Franchise disputes often involve significant money, are factually complex, and typically require review of the franchise agreement, disclosure documents, and operational history by a lawyer with franchise law experience. The duty of fair dealing under the Act is broader than ordinary contract good faith — it imposes affirmative obligations that standard commercial law does not.