Franchising in Canada is growing by leaps and bounds. To illustrate this point, nearly half of all new retail businesses in Canada are franchises. As a result, many individuals and businesses are looking into penetrating the Canadian business market via franchising.Because there are many different laws in Canada that impact franchising, it is good business practice for a potential franchisor to be familiar with these laws and how they concern the business. An excellent source of legal advice relating to Canadian franchising is a lawyer in franchise.

A Lawyer in franchise possess the expertise to offer their clients invaluable legal advice relating to the franchising industry in Canada, thus protecting their clients’ business interests. The services they provide are essential not only during the start-up stages of the business, but during the maintenance phases as well. These services include: preparing and reviewing disclosure documents; drafting, reviewing, and negotiating franchise agreements; registering and licensing trademarks; giving advice on application of franchise laws and regulations; and mediating or litigating commercial disputes, among others.

One important consideration when setting up a franchise business in Canada is how federal laws directly affect the franchise industry.Take, for example, the Competition Act, which prohibits a person who is engaged in the business of producing or supplying a product or service from influencing upward, or discouraging the reduction, of the price at which any other person offers to supply or advertise a product or service within Canada. What this means is, a franchisor is prohibited from establishing the lowest price at which its franchisee is to offer its products or services. The Consumer Packaging and Labeling Act prescribes policies on how products that are sold or distributed in Canada are packaged and labeled. This law would require franchisors to indicate the country of manufacture and the importer’s name and address for products that are imported.  Product labels should also be written in both English and French, Canada’s official languages.

These are just some examples of Canadian laws that can affect the franchise business in the country. Franchise attorneys can best answer queries relating to legal matters concerning franchising in Canada.

-C.D.