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ARTICLE · 09 NOVEMBER 2023

Top 10 Issues In Deciding To Franchise In Canada

Put simply, a franchise relationship is an ongoing contractual relationship that is found to exist under provincial franchise legislation where the franchisor grants (for a certain period of time)...

CanadaCorporate/Commercial Law

Put simply, a franchise relationship is an ongoing contractual relationship that is found to exist under provincial franchise legislation where the franchisor grants (for a certain period of time) the franchisee the right to use the franchisor's trademarks and other intellectual property and business methodology (often within a specific territory or at a specific location only) in exchange for a fee. In most cases, a franchise relationship requires that the franchisor exercises significant control over, or offers significant assistance in, the franchisee's method of business operation. In a franchise relationship, the parties are independent contractors and neither party is an agent for the other party. This designation as a "franchise" is fact-based and occurs when the statutory definition is met, whether a company intends to operate as a "franchise" or not and irrespective of how the parties themselves describe the arrangement. As such, when utilizing

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