The Canadian consumer: Regional differences and buying behaviour
A franchise system opens its first Canadian location in the Greater Toronto Area and performs in line with projections. The same brand, the same price points, the same marketing message, opens eighteen months later in a mature site in Alberta with comparable foot traffic and comparable opera…
View the post titled The Canadian consumer: Regional differences and buying behaviourUnderstanding Canada as a franchise market: Geography, demographics and structure
A U.S. franchisor negotiating its first Canadian area development agreement typically sets the territory and the development schedule the way it would anywhere else: draw a radius, apply a minimum population threshold calibrated to domestic absorption rates, and attach a schedule that assume…
View the post titled Understanding Canada as a franchise market: Geography, demographics and structureWhat counts as a material fact—and how do you find the ones your disclosure document is missing?
A franchisor’s Franchise Disclosure Document checks every prescribed box. The audited financial statements are current, the franchise agreement is attached, the territory and fee schedules are complete, and outside counsel has confirmed that every item the statute requires is present. …
View the post titled What counts as a material fact—and how do you find the ones your disclosure document is missing?What is a material change in Canadian franchise disclosure—and when must it be disclosed?
A foreign franchisor has delivered a compliant Franchise Disclosure Document to a promising Canadian candidate. The fourteen-day period is running. Site selection is underway. Then, eight days in, something happens: the landlord renegotiates a lease term, a key supplier is replaced, an execu…
View the post titled What is a material change in Canadian franchise disclosure—and when must it be disclosed?Can I use my existing financial statements in a Canadian franchise disclosure document?
A foreign franchisor preparing to enter Canada will usually have financial statements already. A publicly traded franchisor may have audited consolidated statements prepared under International Financial Reporting Standards or U.S. generally accepted accounting principles. A privately held f…
View the post titled Can I use my existing financial statements in a Canadian franchise disclosure document?Can you accept a deposit before providing franchise disclosure in Canada?
A foreign franchisor entering Canada will often encounter the deposit question before it encounters almost anything else. A promising candidate has completed the initial interviews, perhaps identified a territory and asked the franchisor to stop speaking with competing prospects. The develop…
View the post titled Can you accept a deposit before providing franchise disclosure in Canada?When must a franchise disclosure document be delivered in Canada?
One of the easiest mistakes for a foreign franchisor to make when entering Canada is to focus almost exclusively on what must be disclosed and pay comparatively little attention to when disclosure must occur. That approach is understandable. After all, preparing a franchise disclosure docume…
View the post titled When must a franchise disclosure document be delivered in Canada?What must be included in a Canadian franchise disclosure document?
For many foreign franchisors, the decision to expand into Canada eventually leads to a practical question: what exactly has to be included in a Canadian franchise disclosure document? This is an important question because Canadian franchise legislation does not simply require that a disclosu…
View the post titled What must be included in a Canadian franchise disclosure document?Personal liability of directors and officers in Canadian franchise disclosure
One of the most important — and least understood — aspects of Canadian franchise law is the potential for personal liability arising from franchise disclosure obligations. For many foreign franchisors, particularly those based in the United States, this issue comes as a genuine surprise. In …
View the post titled Personal liability of directors and officers in Canadian franchise disclosureWhy franchise disclosure matters in Canada
Foreign franchisors entering Canada often approach franchise disclosure as a familiar concept. Most established franchisors already have disclosure documents, franchise agreements, operating manuals, brand standards, training materials, and a developed understanding of how their system is so…
View the post titled Why franchise disclosure matters in CanadaReceive Blog Posts
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