Franchise Agreement: What You Need to Know Before Signing

Owning a franchise is an appealing option for those who are interested in leading their own success, having large amounts of control and supporting themselves with an adequate salary. Having said this, signing a franchise agreement should not be taken lightly. Franchise agreements are often complex to navigate. Before signing a contract it is absolutely critical that you have thoroughly read and understood what is being agreed upon and what the expectations moving forward will be.

Business Timeline

Signing a franchise agreement is usually a fairly lengthy process, often lasting as long as two months. This provides the necessary amount of time to thoroughly read through the franchise agreement, involve an attorney and work through any questions or concerns with the franchisor.

The team at Law Works can help you pay close attention to the timeline of the process to ensure that the franchisor is not rushing you. If you are feeling pressured or rushed to make a decision and sign the agreement, this could be a sign that there are issues in the contract that the franchisor is hoping you will overlook. That’s why it’s critical that you ensure you are comfortable with the timeline. Discussing and agreeing on an ideal timeline at the beginning of the process will help avoid being suddenly rushed into making a poor decision.

Do You Have The Right Information?

Do you have enough information? The main factor in your decision is the information you are provided with about the franchise, and what signing a franchise agreement will mean for your life. Ensure that you have received adequate information about the franchise business, payments, marketing, reporting, product supply, returns on investment and expectations moving ahead.

Common questions to ask yourself:

  • Do you understand the history of the business and its success in the past?
  • Are you aware of public opinion on the franchise?
  • Have you sought out assistance reading and understanding any legal documentation?
  • Have you met with a financial advisor to examine whether this is a feasible option for you?
  • Are you aware of the reasons the franchise is for sale?

It’s can be an overwhelming list of questions but if you answered “no” to any of them, then it’s very possible that you do not have enough information.

Signing a franchise agreement is a big step, and you are entitled to understand the answers to these questions thoroughly. It is wise to have a professional who frequently deals with franchise agreements and will assist you in the process so you do not overlook any important details. It’s better to have these important questions answered than to not have asked them at all. 

Franchise Negotiation

A leading motivation for purchasing a franchise is often to have the control to make the business your own and be your own boss. However, not all franchises offer the same amount of freedom to do this.

Large, highly established franchises frequently have very specific business models and systems in place which they’ve found to be very successful. These franchises require that new franchisees will continue to operate in the same way as the other chains to maintain uniformity. This can leave little room for negotiation.

While somewhat limiting, for many franchisees, this structure is desirable, as you can feel confident based on the previous proven success that the franchise you are purchasing will reliably produce a return on your investment.

Ultimately, when signing a franchise agreement it is important to do your research and seek professional legal guidance. However, do not doubt the role of your instincts. Signing a franchise is an exciting yet risky decision, so make sure you take into account these points of interest before signing.

For more information, contact the legal franchise business experts at Law Works.

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3 Reasons Why You Should Hire a Franchise Lawyer in Vaughan

Thinking of buying a franchise? Expanding your current franchise into Ontario? Here are a few reasons you should hire a franchise lawyer Vaughan ON.

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.

Thing’s To Do This Spring Near Grant Park, Winnipeg

Winnipeg is a beautiful place in the Spring, with so many parks, attractions, and great restaurants to visit, you’ll have a whole day’s worth or enjoyment in the Grant Park area.  As the warm Spring air rolls in, it’s time to start planning fun days with the family. Here are the best things to do in Winnipeg during the spring:

Visit the Assiniboine Zoo, 2595 Roblin Blvd, Winnipeg

It’s a great attraction for families, especially those with small children.  See tigers, pandas, exotic birds, monkeys, critters, watch the polar bears swim, and more!

Enjoy a day in Nature at FortWhyte Alive, 1961 McCreary Rd

There are a ton of activities to do here that are suitable for people of all ages, including families with or without children can enjoy hiking, walking, biking, canoeing, and more.

Adrenaline Adventures, 600 Caron Rd

Feel like a for being active?  Adrenaline Adventures is a place you can try cable wake boarding, zip-lining, climbing, rope courses, paint-balling, beach volleyball, and more.  It’s the best place to experience fun and challenging adventures.

After a full day of fun, you’ll be sure to work up an appetite for a hearty and delicious meal. One of the best restaurants in Winnipeg for social gatherings and family outings is your neighborhood Applebee’s. Here you’ll find great food, great prices, all within the Grant Park area in Winnipeg, just a short drive from the attractions and entertainment.  

Enjoy all of your classic favourites on their menu like BBQ pork back ribs, slow-cooked, smoked, and seasoned to perfection. Taste premium hand-cut steaks off the grill, served with redskin garlic mashed and seasonal vegetables, or any of their signature burgers. Come by Applebee’s after work, the big game or shopping! Anytime at 1150 Grant Park Avenue, Winnipeg.

Buying a Franchise or Starting Your Own Business?

Many of the largest and most successful businesses came from a person’s dream of becoming their own boss. Perhaps you’ve also had dreams about being a successful entrepreneur. If you have been putting some deep thought into running a business of your own, but you’re not sure whether starting your own business or buying a franchise is right for you, you’ll need to consider what would work best for you based on your knowledge, skills, experience, and life plan.

Here are some benefits of buying a franchise that doesn’t come as easily with a start-up business:

Brand awareness

Customers are more likely to be aware of the franchises brand, products, or services.  You won’t need to invest too much into a marketing strategy or have to work as hard as you would with a brand new business to get your name out there.

Established business operations

Learn the day-to-day operations of the franchise and how to operate your business at a level that has proven success. The exposure you gain from this side of the business adds so much value to your skills and experience in the business.

Support system to ensure success

A good franchisor will provide support to their franchisees to ensure success, this includes training, marketing material, and operational support. Having this in your corner takes away a lot of the risk involved in doing it all on your own.

Before deciding on buying a franchise, compile some of the types of franchises suits your skillset most and speak to a franchise lawyer who can help you narrow down what might work best for you.  With good franchises, there typically isn’t much room for negotiations with the terms of the agreement, which is why it’s so important to get legal advice first. Contact an experienced franchise lawyer in Mississauga at Law works who will help you understand exactly what you’re getting into.

What You Should Know About a Franchise

A franchise is essentially a license to operate the franchisor’s business system and use its trademark according to the franchisor’s standards. The term is normally for between 5 and ten years, depending on the agreement and the lease. In exchange for the right to carry on business under the franchisor’s trademark and system, the franchisee usually pays the franchisor an initial fee for these rights (somewhere between $15,000 and $100,000), and an ongoing royalty linked to the gross sales of the franchised outlet (between 5 per cent and 8 per cent of gross sales). There’s usually a requirement for the franchisee to make regular contributions to a regional or national advertising fund as well (between 1 per cent and 4 per cent of gross sales), so that the franchisor can advertise the brand in high-cost media using the contributions of all franchisees. If it’s a bricks and mortar business, the franchisee either constructs and develops the premises itself (at its cost) or can buy the constructed premises on a ‘turnkey’ basis from the franchisor.

Franchisors are essentially selling three things: the value of a (hopefully) recognizable trademark and brand; the know-how associated with the franchisor’s business system (and the franchisor being able to teach that know-how to the franchisee); and the lower unit costs that come from the purchasing power of a large buying group. If you need help with a franchise in Ontario contact Law Works in Vaughan.

Steps To Take When Meeting a Personal Injury Lawyer

toronto lawyer

The client relies on the lawyer to provide a good service, give realistic assessments of the case, highlight financial expectations, follow the client’s instructions, behave with sensitivity, and hold the client-lawyer discussions in confidence. However, in order for the lawyer to follow these expectations, the client must also behave accordingly.

It is very important that the client present the facts of the case fully and honestly. Holding out on information from the Toronto lawyer, will only cause more problems down the road. Even without doing so intentionally, failing to update the lawyer of any personal changes through the case can lead to problems.

Ensure expectations are discussed with the lawyer, so the end results are met and agreed upon by both parties. Discuss short term and long terms goals with the Toronto lawyer and how their services will be able to help.

Keep open communication with the lawyer, so everything to do with the process is understand. Ask any questions that come to mind, as through a mutual understanding, this will lead to better overall results.

Finally, while one responsibility of a lawyer is to discuss financial expectations, it is also the responsibility for the client to ask about the legal fees. Have this information in a written agreement so there is no confusion.

In conclusion, by using Zayouna Law’s Toronto personal injury lawyers, these expectations are assured to be met, with the help from a professional and courteous team, the client-lawyer relationship will be a positive one!

Have You Filed Your 2016 Tax Return Yet? Important Information You Should Know!

For Canadians, the beginning of a new year mean tax season for us all. For the first three months, it’s common to see people scrambling to collect all the documents they will need to file a complete return and maximize their refund. Have you filed for the 2016 tax return yet?

If you have not – you better hurry! The deadline for filing is April 30th, 2017 and since this date falls on a Sunday, your return will be considered on time if it is filed on or before May 1st 2017.

Here are some important documents you may need to begin filing your return, some may or may not apply to you:

T4, Statement of Remuneration Paid
T4A, Statement of Pension, Retirement, Annuity, and Other Income
T4A(OAS), Statement of Old Age Security
T4A(P), Statement of Canada Pension Plan Benefits
T4E, Statement of Employment Insurance and Other Benefits
T4RSP, Statement of RRSP Income
T5007, Statement of Benefits
RC62, Universal Child Care Benefit statement
RC210, Working Income Tax Benefit Advance Payments Statement

So, what happens if you’re unable to obtain a T4 from an employer you worked for and earned an income in 2016?

If you don’t have the T4, you still have to file before the deadline! To calculate your total employment income to enter on line 101 on your return, income tax deducted, CPP, EI, and any pension or union dues paid, CRA recommends using an old pay stub to calculate a prorated figures for the year.

For more information on to get help filing your 2016 tax return, contact the professionals at Softron Tax. Our tax professionals are up-to-date with current tax changes to maximize your refund or minimize your payments.