The appellants appealed a motion judge's decision finding they could not rely on the 'resale' exemption from disclosure under the Arthur Wishart Act.
The Court of Appeal upheld the motion judge's finding that the franchisor was not merely a passive participant in the transaction, as they had met with the prospective franchisees multiple times, considered a new franchise agreement, and required an acknowledgement that limited the franchisees' rights.
The appeal was dismissed.
