Law Works Vaughan: 3 Steps to Resolving Your Franchise Dispute

Find out how to get the most out of your mediation so you can reach a resolution quickly and easily!

If you’re struggling with problems or disagreements with your franchisor, it might seem like it’s impossible to reach a resolution, but don’t worry! Disputes are common, but if you can’t come to an agreement it’s best to appoint a mediator to help out.

The expert mediation at Law Works Vaughan will help you negotiate an outcome that is acceptable to both parties. In our hands, you can rest assured your dispute will be settled as quickly and as smoothly as possible.

Read on to find out how you can get the most out of your franchise dispute mediation:

Prepare and know what you want to achieve

Make sure you have a clear understanding of the problems and how you would like to solve them. Outline your case clearly and concisely at the start of the mediation and have all your paperwork ready to substantiate your claims. For example, if you are alleging your franchisor has violated your contract, be sure to have records to prove it.

Observe obligations

Although you may be dissatisfied with your franchisor, it’s important to uphold any obligations under your franchise contract. Some examples of this might include adhering to confidentiality agreements and ensuring goods or services provided during the dispute are up to standard. It’s easier to make your case if you hold up your end of the deal.

Be cooperative

Try to resolve the dispute and understand that both parties must compromise in order to reach a resolution. Sometimes it’s necessary to think of creative or alternative ways to settle the dispute such as a cash settlement. Whatever the agreement, it’s important to get it in writing to prevent further disagreements.

 

What Franchisees Need to Know About The Arthur Wishart Act

What Franchisees Need to Know About The Arthur Wishart Act Law Works

The idea of franchising is popular amongst those who dream of being in business, but simply don’t have the resources or experience to start out on their own. When franchising, they can rely on the experience of well established businesses as a way of learning all the how-to’s of running a successful business.  

Whether you’re an established franchisee or considering becoming a franchisor in Ontario, it’s important to familiarize yourself with Ontario’s franchise legislation. The Arthur Wishart Act (Franchise Disclosure) was first introduced in 2000 for the purpose of helping potential franchisors, as well as franchisees make more informed decisions when you chose to invest.  The legislation protects franchisees by providing the right to associate and share information with other franchisees, so you can share information about your business experiences before entering into or during your franchise agreement.

Furthermore, under new legislation the franchisor is required to provide a disclosure document at least 14 days before you sign an agreement or provide any payment. The disclosure documents should include details of the franchise’s background and the offer such as:

  • Business background
  • Litigation history
  • Bankruptcy
  • Financial statements
  • Costs (e.g. deposits or fees)
  • Copies of proposed franchise agreements
  • A description of any exclusive territory
  • Any restrictions
  • The franchisor’s policy on volume rebates
  • Conditions of termination, renewal or transfer of the agreement
  • A description of the franchisor´s mediation process, if one is used
  • Training and other assistance programs
  • Advertising funds
  • A list of their current and former franchisees

Before signing any offer or providing payment, you are highly encouraged to seek a franchise lawyer. To determine whether or not the franchise has provided a fair and honest representation of the proposed agreement in the disclosure document and to verify it is compliant with the Act as required. 

Get in touch with an experienced franchise lawyer at Law Works in Vaughan, we’ll be happy to answer all your questions and provide the guidance you need to make these important decisions.