There’s a good reason why franchising has been around for decades. It is a great way for individuals to own and operate their own business. However there are pros and cons of buying a franchise. Some of the advantages of buying a franchise are:
- it provides a proven system for operating the business and generating profits
- it offers training, support and resources
- an established franchise has a brand and a name that attracts customers
If you are thinking about buying a franchise keep in mind that there are also disadvantages. Buying into well-known franchises can be very expensive. You will be expected to conform to strict rules and operating procedures. You will be kept accountable and obligated to pay an ongoing franchise royalty fee and share your financial information, whereas an independent business owner makes all the business decisions. Before you sign anything, do your homework and research the company. Speak to other franchise owners.
Franchise agreements often contain terms that are complex and which may be binding for many years. Consult with us before making a final commitment.
In Ontario, the law provides that every franchise agreement imposes on each party a duty of fair dealing in its performance and enforcement. The duty of fair dealing includes the duty to act in good faith and in accordance with reasonable commercial standards. All information disclosed by the franchisor must be accurate, clear and concisely set out. Failure to abide by the disclosure requirements may result in the rescission of the agreement.
We assist clients with a wide range of court procedures:
- Enforcing franchise agreements
- Breaches of disclosure obligations
- Commencing a law suit for damages
- Interim and permanent injunctions over property
- Interim and permanent injunctions over land
- Jurisdictional issues
- Examination of books and records
- Collection of accounts
- Enforcement of security agreements
- Enforcement of leases
franchise lawyer toronto