The Arthur Wishart Act applies to franchise agreements entered into after July 1, 2000, if the business operated under the franchise agreement is operated or is to be operated partly or wholly in Ontario.
What is a franchise agreement? “franchise agreement means any agreement that relates to a franchise between,
(a) a franchisor or franchisor's associate, and
(b) a franchisee”
“franchisor means one or more persons who grant or offer to grant a franchise”
“franchisee means a person to whom a franchise is granted”
The Arthur Wishart Act dose not apply to:
- “employer-employee relationships;
- partnerships;
- membership in a co-operative association;
- an arrangement arising from an agreement to use a trade-mark, trade name, logo or advertising or other commercial symbol designating a person who offers on a general basis, for consideration, a service for the evaluation, testing or certification of goods, commodities or services;
- an arrangement arising from an agreement between a licensor and a single licensee to license a specific trade-mark, trade name, logo or advertising or other commercial symbol where the licence is the only one of its general nature and type to be granted by the licensor in Canada with respect to that trade-mark, trade name, logo or advertising or other commercial symbol;
- an arrangement arising out of a lease, licence or similar agreement whereby the franchisee leases space in the premises of another retailer and is not required or advised to buy the goods or services it sells from the retailer or an affiliate of the retailer;
- a relationship or arrangement arising out of an oral agreement where there is no writing which evidences any material term or aspect of the relationship or arrangement; or
- a service contract or franchise-like arrangement with the Crown or an agent of the Crown.”
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
