. 2355305 Ontario Inc. v. Savannah Wells Holdings Inc.
In 2355305 Ontario Inc. v. Savannah Wells Holdings Inc. (Ont CA, 2025) the Ontario Court of Appeal dismissed a franchisor's appeal, here from a successful "franchisee’s action brought under the Arthur Wishart Act (Franchise Disclosure), 2000, S.O. 2000, c.3 (the “Act”) for damages".
Here the court considers the central 'disclosure' purpose of the AWAFD:
[4] The Act is designed to redress the imbalance of power between franchisor and franchisee, and to provide a remedy for abuses stemming from this imbalance. Disclosure is required under the Act to provide prospective (and often inexperienced) franchisees with sufficient information to make informed decisions: 2189205 Ontario Inc. v. Springdale Pizza Depot Ltd., 2011 ONCA 467, 336 D.L.R. (4th) 234, at paras. 23-24, leave to appeal refused [2014] S.C.C.A. No. 35648. Pursuant to s. 5(1), a franchisor must provide a disclosure document before “the signing by the prospective franchisee of the franchise agreement or any other agreement relating to the franchise” other than certain specific agreements described in s. 5(1.1).
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