A franchisee brought a motion for partial summary judgment seeking a declaration that it validly rescinded a franchise agreement under s. 6(2) of the Arthur Wishart Act (Franchise Disclosure), 2000.
The franchisee argued that the franchisor failed to provide proper statutory disclosure, including financial statements of the actual franchisor, lease documentation, and directors’ certificates, and failed to disclose several agreements relating to the franchise.
The court held that the deficiencies were substantial and material, rendering the disclosure so deficient that it amounted to no disclosure at all.
As a result, the franchisee retained a two‑year rescission right under the statute and had validly exercised that right.
The court granted declaratory relief and held the franchisee entitled to statutory recovery under s. 6(6).
