Franchising

Are you considering franchising as an option for starting a business? Are you interested in growing an already successful business by franchising across the country? If so, we are here to help. When someone thinks about expanding his business, franchise is one best way to achieve the expansion. Since it involves different people such as franchisee and franchisor, there are probable chances that confusion or problems may occur.

We can assist you in the following ways:

  • Franchise Your Business.
  • Purchase a Franchise.
  • Dispute Resolution Services.

We can help you out with different kinds of franchise matters. In any franchise there is a Franchisee and a Franchisor. The Franchisor give the Franchisee authority to the use the Franchisors’ trademarks. The Franchisee pays a fee to the Franchisor. Further, the Franchisor has significant control in the operation and stake of the business. We at Ontario Franchise Lawyers assist both Franchisees and Franchisors with the preparation and counseling of franchise agreements and disclosure documents, among others.

Important steps for starting of franchise are:

  • Incorporate your business
  • Create and/or Register your Trademarks
  • Examine and outline the Financial Goals you wish to Establish for your Franchise
  • Determine the Structuring of your Franchise(s)
  • Analyze Employment Issues and Supplier Contracts

There are several agreements that revolve around franchise for which we can assist you, they are:

  • Product and service distribution agreement
  • Product licensing agreement
  • Manufacturing agreement
  • Intellectual property agreement
  • Trademarks agreement
  • Patents and copyrights agreements and
  • Other documents of franchise recruitment kit

It is anticipated that problems can occur at any time between the Franchisor and the Franchisee with respect to any part of the agreement i.e. either the franchisee or the franchisor may be dissatisfied at one point in time with the manner in which the franchise is being operated vis-à-vis the agreement. Our lawyers have extensive experience acting for both franchisors and franchisees in franchise default and termination situations including lease terminations, realization on assets and security, receiverships, bankruptcy and injunctions to enforce non-competition provisions of franchise license agreements, among others. Accordingly, because we understand both aspects of franchisor and franchisee transactions, we provide suitable franchise litigation services for both franchisees and franchisors.

Who is a Franchisor?

The Franchisor is the company owning or controlling the rights to grant franchises to potential franchisees. Franchising is a long-term cooperative relationship between two entities, a franchisor and one or more franchisees that is based on an agreement in which the franchisor provides a licensed privilege to the franchisee to do business.

There are many misconceptions about franchising, but probably the most widely held is that you as a franchisee are “buying a franchise.” In reality you are investing your assets in a system to utilize the brand name, operating system and ongoing support of the franchisor. You and everyone in the system are licensed to use the brand name and operating system. The business relationship is a joint commitment by all franchisees to get and keep customers. Legally you are bound to get and keep them using the prescribed marketing and operating systems of the franchisor.

To be successful in franchising, you must understand the business and legal ramifications of your relationship with the franchisor and all the franchisees. Your focus must be on working with other franchisees and company managers to market the brand, and fully use the operating system to get and keep customers.

Cross Border and International Franchising

Canada has long been, and will continue to be, the most lucrative foreign market for the United States franchisors that expand internationally. While the laws regulating franchising in Canada are less restrictive than their counterparts in the U.S., franchisors still require a complete and comprehensive strategy – legal and otherwise – prior to jumping across the border and offering franchises in Canada.

Five provinces in Canada have passed franchise laws: Alberta, Manitoba, New Brunswick, Ontario, and Prince Edward Island. British Columbia is also considering franchise disclosure legislation. The Canadian Franchise Association (CFA) recommends that its franchisor members use a franchise disclosure document throughout Canada.