The appellant franchisee appealed the dismissal of its action against the respondent franchisor for breach of the statutory duty of fair dealing under the Arthur Wishart Act.
The appellant argued that the franchisor failed to provide sufficient disclosure regarding a right of first refusal for a new restaurant location, specifically concerning the final lease terms and the size of the exclusive territory.
The Court of Appeal dismissed the appeal, upholding the trial judge's finding that the franchisor acted in good faith and in a commercially reasonable manner, and that the appellant's decision to pass on the location was an informed one based on its own financial position and lack of confidence in the landlord.
