The appellant franchisor appealed a summary judgment declaring that the respondents validly rescinded their franchise agreement due to a lack of disclosure.
The franchisor argued it was exempt from disclosure obligations under the resale exemption of the Arthur Wishart Act, claiming it merely consented to the transfer between the former franchisee and the respondents.
The Court of Appeal dismissed the appeal, finding the franchisor was actively involved in the transaction by directing the respondents to the vendor, participating in negotiations, and requiring the execution of additional documents not specified in the original franchise agreement.
Consequently, the grant was 'effected by or through the franchisor', nullifying the exemption.