Franchisors and the Duty of Good Faith
In Ontario, under section 3(1) of the Arthur Wishart Act, every franchise agreement imposes on each party a duty of fair dealing in the performance and enforcement of the agreement. The duty of fair dealing includes a duty to act in good faith and in accordance with reasonable commercial standards. Under section 3(2) of the Arthur Wishart Act, a party to a franchise agreement has a right of action for damages against another party if they breach the duty of fair dealing.
In First of Five Inc. v. Recipe Unlimited Corp et al, 2025 ONSC 93, at . . . [more]


