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ARTICLE · 16 JANUARY 2019

Are You Making False Representations In Your Franchise Agreement?

All or almost all franchise agreements include clauses stating that the franchisor has not made any representations to the franchisee to induce it to enter into the contract,

CanadaCorporate/Commercial Law

All or almost all franchise agreements include clauses stating that the franchisor has not made any representations to the franchisee to induce it to enter into the contract, except as set out in the franchise agreement itself.

Is it possible that an otherwise well-written franchise agreement might itself contain false representations by the franchisor?

Oddly enough, in many cases, the answer to that question is "yes".

Some franchise agreements do include at least one or even several "false representations" by the franchisor.

A first category of such false representations is often found right in the preamble to the agreement and relates to the franchisor's experience, investments and reputation.

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