Franchise Law
Overview
Sotos LLP has been Canada’s leading firm in franchise law for more than 30 years. Whether you’re a franchisor, franchisee, or franchise association, our lawyers protect your business rights while promoting positive franchise relationships; in times of stress, and in times of success.
In a world where legal relationships are governed by contracts, franchisors want to protect their franchise investment and intellectual property, while doing all they can to promote positive franchise relations essential to their business success; without the costly negotiations that go along with every franchise sale. Whether you are starting a franchise business or are an experienced franchisor, our franchise lawyers are well-versed in every aspect of business and franchise law.
If you are a franchisee, or are thinking about becoming a franchisee, our franchise lawyers will effectively analyze business opportunities and help you make well-informed business decisions in order to avoid many of the common pitfalls associated with franchising. Our team will help you with reviewing and assessing the franchise disclosure document, dispute mediation and resolution, franchise agreements (negotiation, renewal, long-term implications), and much more.
Sotos LLP has helped structure and represent more franchisee associations than any other law firm in Canada. These specialized consulting projects have helped many associations play a key role in leading franchise cases and franchise fairness legislation.
At Sotos LLP, we view litigation as a last resort since our focus is on finding solutions that make good business sense. Through early dispute resolution, including mediation, we have a proven track-record of restoring that balance of power fairly, and effectively. But when all else fails, we litigate aggressively and we litigate to win by drawing on our cumulative resources and experience to pursue cases through trial and appeal.
When it comes to franchise law, we’re in the know.
Industry Leaders
John Sotos
Listed in the LEXPERT Directory, The Best Lawyers in Canada, International Who’s Who and Franchising World and more as one of the preeminent franchise lawyers in Canada.
Arthur Trebilcock
Listed as one of the leading franchise practitioners in The Best Lawyers in Canada, Who’s Who, and in the LEXPERT Directory every year since its inception.
Allan D.J. Dick
Listed in The Best Lawyers in Canada, Who’s Who, and the Canadian Legal LEXPERT Directory as a leading franchise litigation practitioner every year since its inception.
Peter Viitre
Listed in Who’s Who Legal: Canada 2011 and Best Lawyers 2012 as a leading Canadian franchise law practitioner.
Jean-Marc Leclerc
Eminent class-action litigator with broad experience defending franchise class actions.
Recent Blog Posts
Leave to appeal Smith v. Inco to Supreme Court of Canada denied
Jean-Marc Leclerc and David Sterns
Published April 26, 2012
The Supreme Court of Canada denied leave to appeal in the Smith v. Inco class action today. The class action alleged that a nickel refinery operated by Inco for 66 years contaminated properties in the Port Colborne area and that disclosures about this contamination negatively affected property values. The Ontario Court of Appeal overturned a $36 million trial judgment, concluding the plaintiffs failed to establish liability in nuisance and failed to prove any damages.
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How do I renew my Franchise Agreement?
John Yiokaris
Published April 12, 2012
Renewal provides a key opportunity for franchisors to institute changes to their business systems and move franchisees over to the current form of their franchise agreement and standards (i.e. trade-dress, equipment, and signage). The renewal process should be seen as a balancing act between modernizing the franchise agreement on the one hand, while not modifying it in such fundamental ways so as to make it unpalatable to franchisees.
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Oasis juice manufacturer wins in court, loses in court of public opinion
Stuart Freen
Published April 12, 2012
Lassonde Industries learned a harsh lesson this month: hardball litigation can generate some seriously bad publicity. Although a party may have a legally enforceable position, the negative press that can be associated with litigation can make it hardly worth it. This is particularly true in “David and Goliath” type situations where a large company sues a smaller party.
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The need for nuanced employment non-competition covenants
Stuart Freen
Published March 20, 2012
Businesses in competitive industries that rely on customer lists or intellectual property may want to take a second look at the non-competition agreements which they ask their employees to sign. In the recent case of Mason v. Chem-Trend Limited Partnership, the Ontario Court of Appeal held that a non-competition clause was completely unenforceable for the reason that it was too strong a restriction on competition.