Derek Ronde - Cassels Brock & Blackwell LLP
Idan Erez - Sotos LLP
The contractual duty of good faith has taken on significant importance in the context of franchising in Canada in recent years, particularly in light of the concept being entrenched in franchise legislation across the country. As a result, Supreme Court of Canada decisions on the topic merit close examination by franchise parties. Since 2014, there have been three significant Supreme Court cases (Bhasin, Callow and Wastech) that explore the parameters of the duty of good faith and the extent to which express contractual language can be deviated from in light of the conduct of contractual parties. This presentation will explore these three interesting decisions and provide guidance on how franchise parties (both franchisors and franchisees) can apply good faith principles to key events in the franchise relationship, including renewals, terminations, resales/assignments, and system change.