Recent Blog Posts

How do Franchisors Make Money?

Allan Dick

Published February 27, 2017

Franchising is one way of many by which a business can expand. The key ingredient that a business must have that wants to consider expansion through franchising is something that someone would want to license from it to use in the operation of an independently owned business.

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Questions about Disclosure Following the Raibex Decision?

Faye Lucas

Published January 17, 2017

Lawyers are often asked to prepare franchise disclosure documents (“FDDs”) for franchisors prior to a location being secured. Practically speaking, some franchisors do not want to undertake the cost and effort and possible risk of finding and securing a site unless they have a committed franchisee. Franchisors consider franchisees to be committed only once they have signed a franchise agreement or at least paid some initial franchise fee or deposit. While this is a common business scenario, the legal framework is fraught with risk as exemplified by the recent Ontario case, Raibex Canada Ltd. v. ASWR Franchising Corp., 2016 ONSC 5575 (“Raibex”).

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Rescission Insurance: Mitigating Risks For Franchisors

Marta Jankovic

Published January 3, 2017

As the franchise business model continues to flourish across Canada, managing statutory liability risks continues to be a concern for franchisors. Franchisor insurance has long been available to American franchisors. Insurers have recently turned to Canada as a good market for their franchisor insurance products.

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Ontario to ring in the New Year with more Land Transfer Taxes

Louis Alexopoulos

Published December 6, 2016

In his fall fiscal update on November 14, 2016 the Minister of Finance for the Province of Ontario took the not-unprecedented opportunity to announce an increase in Land Transfer Taxes payable by purchasers of real estate in Ontario. Effective January 1, 2017 purchasers of commercial real estate will have to pay Land Transfer Tax to […]

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U.S. Insight: Using Customer Feedback to Evaluate Franchisees

John Sotos and Jennifer Staines

Published November 30, 2016

Consumer reviews are integral to an individual’s decision to purchase a product or service. By extension, reviews are intertwined with a business’s success.  In the world of franchising, customer feedback serves a dual purpose – not only does it drive business (or detract from it), but it also operates as an effective tool for franchisors […]

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Social Media and Copyright: Can I Post that Photo?

Jennifer Staines

Published November 21, 2016

Most businesses now use Facebook, Instagram, Twitter, LinkedIn and other social media platforms to promote their services or products. But when a business posts a photo on Facebook or another site, who is the copyright owner and what rights do others have to use or disseminate that photo?

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The Endean decision of the Supreme Court of Canada promises greater coordination of national class action settlements

Jean-Marc Leclerc

Published November 3, 2016

In a recent decision, Endean v. British Columbia, 2016 SCC 42 (“Endean”), the Supreme Court of Canada concluded that class action judges in a national class action can sit outside their home province to hear and approve class action settlements with judges from other provinces. Prior to the decision, the issue was in doubt, raising constitutional questions and issues about territorial jurisdiction.

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Rental Agreements – Get it in writing!

Adrienne Boudreau and Julie Grajales

Published November 3, 2016

When entering into a rental arrangement with a family member or friend, it might seem unnecessary to draft a formal written agreement. It might seem that an oral agreement is good enough. However, to protect the landlord’s interest, it is important to document the tenancy and to specify the terms under which the tenant may occupy the property. Without an agreement, the landlord’s equity interest in the property could be at risk.

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Succession Planning for your Dealer: Dad promised me it’s mine!

Andy Seretis

Published October 31, 2016

In this article, we will discuss a somewhat-related topic of properly planning for the succession of your dealership. This could include transferring the dealership to a family member, or the eventual sale of the dealership to an outside party such as a manager/employee of the business.

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Be Prepared: Changes to Tax Rules Could Mean Higher Taxes on Sale of Dealership

John Sotos and Andy Seretis

Published October 31, 2016

Automotive dealerships often have millions of dollars in internally-generated goodwill. Changes announced in the recent federal budget could mean a much higher tax bill on the sale of this goodwill after January 1, 2017.

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