In a statement, the Toronto Film Festival said the film's producers made the decision not to show the picture about the "Respect" singer.
"We are extremely disappointed that Toronto audiences will not be able to see this extraordinary piece of art," the festival said in a statement. "The footage in the film is truly a cinematic treasure of 20th century music and we hope global audiences will have opportunity to experience this film once a resolution is found."
Jon D. Cantor, an attorney for the singer, said a screening at the Chicago Film Festival in October has also been cancelled.
Last week, a federal judge in Denver halted a planned screening of the film at the Telluride Film Festival after Franklin's team filed a lawsuit on Friday to prevent its release. Lawyers for Franklin argue that director Sydney Pollack said he would not use footage of the singer shot in 1972 for commercial purposes without her agreement or consent. Pollack died of cancer in 2008, and producer Alan Elliott laboured to corral his footage into a film.
Two of the three Toronto screenings will be replaced by showings of Elaine Constantine's Northern Soul, a coming-of-age story about a working class teenager who becomes engrossed by the soul music scene. Event-goers for the third showing will be able to exchange their tickets for other screenings.