The Ontario Superior Court's recent decision
in 2611707 Ontario Inc., et al v. Freshly Squeezed
Franchise Juice Corporation, et al., 2021 ONSC
2323 (“Freshly Squeezed”) is another
example of the Court applying the test promulgated
in Raibex Canada Ltd. v. ASWR Franchising Corp., 2018 ONCA
62 (“Raibex”)1 to
determine whether one or more deficiencies in the
franchisor's disclosure document entitles a franchisee to the
two-year rescission remedy under Section 6(2) of
the Arthur Wishart Act (Franchise
Disclosure), 2000, SO 2000, c.3 (the
“AWA”).
The Court in Freshly Squeezed relied heavily
on the Court of Appeal's decision
in Raibex in finding that failing to provide
complete financial statements and failing to include an Agreement
to Lease were material disclosure deficiencies. The Court also
found that failing to highlight that the franchised business would
be the first to be operated in a non-mall retail environment
amounted to failing to disclose a “material
