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Published on: 18 Oct 2017 By

What the Cost of Your Training Kit Says About Your Multi-Level Marketing Company

For aspiring multi-level marketing (“MLM”) or direct selling (“DS”) companies, a positive written opinion by Canada’s Competition Bureau is an important first step in the operational success of their business. However, early decisions in the pricing of “st…

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Published on: 28 Aug 2017 By

$500 Million Tim Hortons Class Action – A Warning for Franchisors Administrating Ad Funds

Tim Hortons is the largest franchise system in Canada by number of franchised locations, operating with approximately 3,500 units nationally. Accordingly, any legal action relating to the business makes waves in the franchise community and serves as a warning to other franchisors. On June 19…

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Published on: 21 Aug 2017 By

EU-US Privacy Shield Framework – Does it Apply to Your Business?

Background In late 2015, the highest court in the European Union invalidated the Safe Harbor data-transfer framework that ruled over the transmission of personal data between the EU and U.S. for approximately 15 years. The European Court of Justice held that the U.S. government’s repeated an…

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Published on: 18 Aug 2017 By

Canada Consumer Product Safety Act – Does it Apply to Your Business?

The Canada Consumer Product Safety Act (“CCPSA”) has the stated purpose of protecting the public by addressing or preventing dangers to human health or safety that are posed by consumer products in Canada, including those products that are imported.[1] The legislation defines a “danger to hu…

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Published on: 14 Jun 2017 By

Franchising in Canada: have the wheels fallen off?

(Note: This article was also published on AdvocateDaily) Last year was relatively quiet in terms of major (i.e. Court of Appeal) decisions or legislative changes. One interesting, and important, development is the increasing willingness of the courts to decide matters based on summary judgme…

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Published on: 24 May 2017 By

Unionizing Franchise Locations Could Become Easier Under Proposed Changes to Ontario Law

The Ontario Changing Workplaces Review has now issued its Final Report, and there’s good news and bad news for franchisors. First, the good news: as we outlined in February, there were concerns that the Final Report would call for expanding the situations where franchisors would be considere…

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Published on: 4 May 2017 By

Raibex decision alters franchise landscape on presale disclosure

The disclosure obligations for franchisors expanded with a recent Ontario Superior Court of Justice ruling, and will change the way deals are struck in the province, says franchise lawyer Peter Dillon. In Raibex Canada Ltd. v. ASWR Franchising Corp., 2016 ONSC 5575 (CanLII), the judge found …

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Published on: 28 Feb 2017 By

Potential Changes to Employment Legislation May Mean Increased Liability for Franchisors

The Ontario Changing Workplaces Review’s final report is expected to be delivered in the next few weeks and, if some of the ideas contained in its interim report become law, franchisors may find themselves liable as employers of their franchisees’ employees, regardless of the franchisor’s ac…

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Published on: 18 Jan 2017 By

Raibex Canada Ltd. v ASWR Franchising Corp., Implications for Franchisors

Executive Summary and Client Advisory This case, decided late in the late Fall of 2016 and currently under appeal, is potentially highly problematic to franchisors who sign franchise agreements with prospects before a site has been selected. In essence, the trial judge found that doing so is…

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Published on: 17 Jan 2017 By

Franchising – Presale Disclosure Now Mandatory in British Columbia

For those franchisors offering, or planning to offer, franchises in British Columbia, please take note that effective February 1, 2017, you must now provide a BC-compliant disclosure document to all franchise prospects at least 14 days prior to signing any agreement relating to the franchise…

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