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Releases from Canadian Midas Franchisees Found Unenforceable

By Jennifer Dolman and Andraya Frith
April 29, 2010

A recent decision from the Ontario Superior Court of Justice in 405341 Ontario Limited v. Midas Canada Inc. (“Midas“; 64 B.L.R. (4th) 251 (Ont. S.J.)) calls
into question the following common practices of franchisors in Canada:

Requiring Releases on Transfer or Renewal: Midas brings into question the enforceability of such releases under the Arthur Wishart Act (Franchise Disclosure), 2000 (the “Wishart Act”), not only with respect to franchisees operating in Ontario but ' depending on the governing law provision in the franchise agreement ' possibly in other provinces as well.

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