Franchise Class Actions
Franchise class actions can be brought on behalf of franchisees when their franchisor breaches provincial franchise legislation or the franchise agreements. Ontario and several other provinces give franchisees various protections through provincial franchise legislation. These protections require the franchisor to deal fairly and commercially reasonably with franchisees, and to provide proper disclosure to any franchisee before they sell a franchise. They also prevent a franchisor from hinder franchisees’ abilities to associate.