Is Your Licence Or Distribution Arrangement Really A Franchise?

Many equate franchising with the well-known and recognized quick-service restaurants and coffee bars prevalent around the world. But you would be surprised to learn that many of the goods and services providers that one uses on a regular basis are franchised. In fact, the use of franchising as a means of distributing goods and services crosses all industries, in both the 'business to consumer' and the 'business to business' markets.

What may be more surprising is that a simple licence or distribution arrangement may be a franchise under provincial franchise law resulting in the licensor or distributor being subject to strict pre-sale disclosure obligations and harsh remedies for non-compliance.