Can a seller's non-compete cover all of Canada, or does it have to be limited to Ontario?

There is no fixed rule limiting a seller's non-compete to Ontario, or any other specific geographic boundary — the permissible geographic scope depends on where the business actually competed and generated goodwill, not on provincial lines drawn for their own sake. A business that genuinely operated, sold, or had customers across Canada could reasonably support a Canada-wide restriction, since that reflects the real footprint of the goodwill the buyer is paying to protect, while a business that only ever served a specific city or region would have a much harder time justifying the same national scope.

Ontario courts reviewing a seller's non-compete, which are treated more permissively than an employee's non-compete, still look at whether the geographic scope is reasonably necessary to protect the goodwill actually purchased, so a clause reaching well beyond where the business ever realistically operated risks being found broader than necessary. Buyers seeking a wide geographic restriction should be able to tie it to the business's genuine operating footprint and realistic expansion plans, rather than defaulting to a broad national scope simply because it sounds more protective.