A Word of Warning to Franchisors – ADR Provisions May Postpone the Limitation Period for Rescission

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.

Read the McMillan Franchise & Distribution Bulletin.

This article was published in The Licensing Journal.

This article was published in TerraLex Connections.

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This article was published in the Ontario Bar Association Franchise Law Section newsletter (members only).

This bulletin is published to inform clients and contacts of important developments in the field of franchise and distribution law. The content is informational only and does not constitute legal or professional advice. We encourage you to consult a McMillan lawyer if you have specific questions or concerns relating to any of the topics covered here.