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Sukhi Hansra October 12, 2026
Franchising in Ontario runs on its own statute, the Arthur Wishart Act (Franchise Disclosure), 2000, with its own disclosure regime, its own rescission remedies, and its own ways of going wrong for both sides. A franchisor who discloses badly can face rescission two years after the money changed hands. A franchisee who signs without a real review inherits every one-sided clause in a document written by the other side's lawyers.
We practice on both sides of the franchise relationship, acting for franchisors who build and run systems and for franchisees deciding whether to sign one, though never for both sides of the same system. That double vantage point is the practical advantage, because we negotiate franchise agreements knowing exactly how the other side built them.
| Your situation | Start here |
|---|---|
| Considering a franchise and holding a disclosure document | Franchise Agreement & FDD Review |
| Buying an existing location from a departing franchisee | Franchise Resales (both transactions handled together) |
| Selling your franchise location | Franchise Resales |
| Thinking about franchising your business | Franchising overview (the guide on that page is the right first read) |
| Running a system: transfers, renewals, updates | Ongoing franchisor work, so book a discovery call directly |
| Bringing a concept into Canada, or granting territory rights | Master Franchise Agreements (or Area Developer / Area Representative for territory deals) |
Ontario’s franchise law is disclosure law. A franchisor must deliver a compliant disclosure document at least 14 days before the franchisee signs anything binding or pays anything at all, and “compliant” is where systems get caught. For franchisees, those same rules are leverage, because knowing what should be in the FDD is how you spot the system that left it out. Either side of the table, the statute rewards whoever read it more carefully.
The Arthur Wishart Act backs its disclosure rules with the strongest remedy in Ontario business law, rescission. A franchisee who received a materially deficient disclosure document can rescind the franchise agreement within 60 days of receiving it, and a franchisee who never properly received one at all can rescind for up to two years after signing. Rescission does not mean walking away from what is left; it means unwinding the venture, with the franchisor obligated to compensate the franchisee for the franchise fees, the equipment and inventory, and the losses incurred setting up and operating. In practice, rescission can mean a refund of every dollar the franchisee put into the venture.
That single remedy shapes both sides of our practice. For franchisees, it means a bad outcome may have a real exit, and the deficiency analysis is worth doing promptly because the windows are hard deadlines. For franchisors, it means the disclosure document is not paperwork. It is the wall between the system and an obligation to buy back every deficiently-disclosed franchise, and it deserves to be built and updated like the liability instrument it is.
Franchise reviews and packages are among the most clearly-scoped work we do, so most of it is flat-fee, with reviews at two depths and transaction packages with defined add-ons. You will have the exact number in writing after a free discovery call. That is our no surprise billing policy. Learn how our fees work.
The agreement was drafted by the franchisor’s lawyers, for the franchisor, and it is usually presented as barely negotiable. A review tells you what you are actually agreeing to, meaning the fees, the restrictions, and the renewal and exit terms, and which of the “non-negotiable” clauses systems routinely adjust when asked properly.
The FDD is the statutory disclosure package an Ontario franchisor must deliver at least 14 days before a franchisee signs or pays anything. It covers the franchisor’s background, the costs, the obligations, and the material facts of the system. A deficient FDD can give the franchisee the right to rescind the agreement afterward.
Franchise agreements almost always require franchisor consent to a transfer, along with conditions such as fees, training for the buyer, and sometimes a right of first refusal. Consent cannot usually be withheld arbitrarily, and the transfer clause is one of the first things we read on a resale, whichever side of it we act for.
Start with whether the business is actually ready to replicate, meaning a proven unit, documented operations, and margins that survive a franchisee taking their share. The legal build (disclosure document, franchise agreement, system contracts) comes after that readiness question, and our guide to franchising your business walks through the whole decision.
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Reviewed by Sukhi Hansra, Business and Franchise Lawyer at Hansra Law.
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See What Others Say
★★★★★
“We had delt with Sukhi Hansra during our franchise process and he was very professional and helpful when it came to going through the franchise disclosure documents.”
— Patrick, Google review
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“Sukhi called me and gave me great advice, direction and didn't sugar coat anything. Highly Recommend.”
— Jason P., Google review
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“He is both knowledgeable and kind, and is so committed to the wellbeing of his clients, and to a positive outcome. We will never go with anyone else!”
— KM Rebirth, Google review
Most owners deal with the legal side only after something goes wrong. By that time, you could spend tens of thousands of dollars unwinding what a quick conversation could have prevented. It doesn’t have to be that way if you have the right lawyer in your corner!