Still Unenforceable to Require a General Release

Ontario’s Court of Appeal finds that a franchise agreement clause requiring the franchisee to sign a general release of all of its claims against the franchisor as a precondition to the franchisor’s consent to an assignment of the franchisee’s agreement to a third party is unenforceable and cannot be read down by the Court to only require a release of claims not covered by the Arthur Wishart Act (Franchise Disclosure), 2000. If you are in process of looking at a franchised business, please contact Sylvie Patenaude at our office to know your rights. Final.