In the recent Ontario Court of Appeal decision in PQ Licensing S.A. v. LPQ Central Canada Inc. (“PQ Licensing”), the Court considered whether the mandatory mediation process prescribed by a franchise agreement impacted the limitation period applicable to a franchisee’s rescission claim. The Court found that the franchisee’s claim for rescission was not barred even though the franchisee had delivered its notice of rescission nearly a decade prior. This decision hinged on the alternative dispute resolution provisions set out in the franchise agreement.
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