Are you considering buying a franchise or a current franchisor thinking of expanding into Canada? If so, you may want to consult a local legal professional who specializes in franchise law.
Here are three reasons why you should hire a local franchise lawyer in Vaughan, ON:
They know what to look for
Each province has specific franchise legislation. For example, large and established franchises in Ontario are exempt from providing financial statements. However, this is only if they meet the criteria detailed in Part III of O. Reg. 581/00.
Consequently, it’s important to familiarize yourself with the way these laws vary from province to province.
They can promote fair dealing
Most importantly, a franchise lawyer can also help each party to uphold the duty of fair dealing. This is outlined in Arthur Wishart Act (Franchise Disclosure), 2000 which encourages participants in a franchise agreement to engage in good faith. Similarly, having a strong counsel may be able to prevent future complications.
They can handle disputes
If complications do occur, franchise lawyers are uniquely capable of smoothing things over. Ben Hanuka, head of Law Works PC, launched the first franchise disclosure class action in Ontario. The case — Bekah v. Three for One Pizza (2003) — involved the franchisor structuring a transaction in a way that tried to sidestep disclosure requirements. Ultimately the court sided with the purchaser with help from the franchise lawyer.
In conclusion, hiring an experienced franchise lawyer can provide you with significant legal protection.