Canadian Franchise Law
Canadian Franchise Law - Topics on this page:
Canadian Franchise Law - Franchise:
franchise is a clone of a successful business. The franchisor has developed
a system for reproducing his business (often right down to the last detail).
As a franchisee, you rent the franchisor's trademark and method of doing
Canadian Franchise Law - Franchise Agreement:
A franchise agreement is a contract which is entered into between the franchisor, and the franchisee (and any guarantors, or others) in which the relationship between the franchisor and franchisee (and others) is described, in detail.
Alberta and Ontario are the only provinces to have specific Franchise Acts. Alberta's Franchises Act went into effect on November 1, 1995. Ontario modeled its legislation on the Alberta Franchises Act. It went into effect on January 31, 2001.
These Acts provide for full disclosure of relevant facts and offer additional protection to prospective franchisees.
The franchisor is selling a business that has been successful in other areas;
- Often the franchise has instant name recognition and a known quality of product which is attractive to potential customers;
- Most franchisors offer some degree of ongoing marketing and operational support;
- As a franchisee, you may benefit from the franchisor's marketing campaigns, or have lower inventory costs because of the franchisor's suppliers.
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