When people hear the word franchise the first thing that comes into mind would be McDonald’s or Domino’s because it’s always linked with that industry. Franchising is the reason why these big companies had become so popular and successful all over the globe even if there has been issues between the companies and the people running the franchises that somtimes end up in court.

But what does it really mean?

By definition, franchise means you’re a copy of a mother company (think Dolly the sheep or the Clone Army in Star Wars) where you as a franchisor (the one owning or giving the business) had developed a system for replicating a business down to the very last detail and if you’re the franchisee (the one getting or handling the business), you copy the main business’ methods and carry their trademark.

Simply put, someone gives you a business to run and you run it according to how they want it.

Once an agreement has been made on both sides, a franchising agreement would be drafted a lawyer Toronto which would be drafted by the franchise lawyer.

The significance of franchising cannot be underestimated It helps in the economy and businesses alike. In Canada, close to 45% of retail sales, particularly in the food services industries are made from franchising. Franchisng has become popular in Canada in the during the 80′s, which was why the government had to find ways to control the emerging business system.
But on January 31, 2001, the Arthur Wishart Act was passed to make franchising in Canada more comprehensive and systematic.

So far Ontario and Alberta have franchsing laws, yet it is the standard used in every area in Canada. According to the Franchise Disclosure Act, for a business to become a franchise, the franchisee has to shoulder the expenses/costs in the operations of the business itself. Particularly, if the franchisor grants the franchisee the right to sell or distribute goods and/or services that are substantially associated with the franchisor’s trademark, service mark, trade name, logo, advertising or brand of the company, the issues dealing with franchises are complex, this is why it’s preferred that a lawyer franchise be present to help.

Businesses would be also considered a franchise when the franchisor has and maintains control over and provide assistance to the franchisee’s operation. The company must give the franchisee also the authorization and rights to run the business as they see fit, even if they have complete control over it, Toronto Lawyers who specialize in franchise law can help with legality issues involved in distribution and sale of goods and services involved in franchising.
This law prevents forfeiting the rights of the franchisee as it protects them from being abused or exploited as they are normally perceived as the weaker party in a franchisor and franchisee relationship, especially since they can form associations or a collective body that would help them case there are problems with the franchisors or if they are on the process of starting a franchise.

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