A recent Ontario court decision certifying a class action on behalf of 207 franchisees against their franchisor, General Motors of Canada Limited (GM), contains three important messages franchisors should consider in dealing with franchisees. The messages from the decision, Trillium Motor World Ltd. v. General Motors of Canada Limited, are:
1. Franchisee/franchisor disputes are well suited to class certification.
2. This is particularly so where the conduct at issue is that of the franchisor treating all franchisees in common.
3. An important and unilateral amendment to the franchise agreement may well trigger an obligation to deliver a disclosure statement under Ontario’s franchise disclosure legislation, the Arthur Wishart Act.