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ARTICLE · 28 APRIL 2021

Commission-Based Affiliation: A "False Franchise"?

A unique feature of franchising is that franchise structures, business models and agreements can (indeed, should) be tailored to the specific characteristics of each industry and, equally ...

CanadaCorporate/Commercial Law

A unique feature of franchising is that franchise structures, business models and agreements can (indeed, should) be tailored to the specific characteristics of each industry and, equally, to the operations, resources and needs of each franchise network.

There are, therefore, many variations of franchise arrangements, one of which deals with the degree of control that the franchisor has over the operation of the franchised businesses in its network.

Notwithstanding these variations (which are, moreover, entirely desirable to ensure that the franchise arrangement and structure are appropriate to each system), a franchise relationship must still have certain fundamental characteristics, one of which is that a franchisee operates a real business that it owns.

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