Franchise legislation also treats as unenforceable a provision of a franchise agreement that limits the application of provincial laws or limits jurisdiction or court to an outside-province forum for enforceable claims under that province`s franchise laws. In The Shoppers Drug Mart case, the lamentable franchises commenced a class action, in which they argued, among other things, that Shoppers violated their franchise agreements and exploited the franchise system in several respects, in violation of the duty of good faith and fair trade. In short, the complainants claimed that Shoppers did not share profits with its franchisees. The franchisor was able, prior to certification, to remove certain claims as unrepressed, since it did not disclose a means. The right to vote in Canada requires all parties to a franchise agreement to trade fairly when the agreement is implemented and enforced. It also implies the obligation to act in good faith and in accordance with appropriate trade standards. Financial compensation made available to a franchisee includes: (i) the reimbursement of all funds paid to the franchisor; (ii) reimbursement of all funds paid to the franchisor for inventory, supplies and equipment; and (iii) compensation for any other net loss resulting from the acquisition, creation and operation of the franchise. In Alberta, only these ”net losses” are repayable. Under Canadian law, restrictive and non-competition agreements are considered trade restrictions and are not applicable unless the franchisor can demonstrate that the restrictive federal regime in its scope is appropriate with respect to (i) the territory, (ii) the duration and (iii) and remains necessary to protect the legitimate or proprietary interests of the franchisor. If the federal government survives the first stage of the investigation and the franchisee still wishes to challenge its enforceability, the franchisee must find that the restrictive Confederation is contrary to the public interest or otherwise insults public policy.
The province of Quebec is a civil court. Although Quebec does not have franchise-specific legislation, both the Civil Code of Quebec and the Charter of the French Language apply to franchising. In addition to the retraction, a franchisee has the right to claim damages for false information contained in the publication document or for non-compliance with advertising obligations by a franchisor.