Blog Bite: When can franchisors enforce releases in Ontario?

This article Canada: Release Me: Ontario Court Of Appeal Clarifies When Franchisors Can Enforce Releases briefly details the case of Trillium Motor World Ltd. v. General Motors of Canada Limited which concerns the interaction of section 11 of the Arthur Wishart Act (AWA) with release agreements between a franchisor and franchisee. Section 11 states franchisees cannot waive their rights under the AWA except in very limited circumstances.

In this case, the Ontario Court of Appeal clarifies what those circumstances are and can help franchisors draft commercially reasonable releases going forward. For an explanation of the court’s reasoning, please click the link above.

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Written by Chris.