Does a franchisor have a duty of good faith against a franchisee?

Iacobucci J., in Wallace v. United Grain Growers [1977] 3. S.C.R. 701, noted that the employment context that creates a duty of good faith is also present in a franchisor-franchisee context. He stated that the relationship between a franchisor and a franchisee is not one between equals. The franchisee, like the employee, is unable to negotiate more favourable terms. The inequality of power continues during the relationship, as the franchisee must buy certain equipment or products and be subject to supervision and inspection. As a result, the franchisor must be held to a duty of good faith and fair dealing.