The greatest disadvantages facing franchisors in Canada include the costs, complexities and risks associated with franchise disclosure, including possible personal liability for the signatories of the franchise disclosure document, franchise lawyer Peter Dillon tells Corporate LiveWire’s Franchise Law 2015 Virtual Round Table.
“Another significant downside to franchising is the growing difficulty in finding good franchisees; i.e., people who are willing to work hard and follow a system. Both of these qualities seem to be in short supply,” says Dillon, partner with Siskinds LLP.
In addition to discussing the pros and cons of owning a franchise in each jurisdiction, Dillon joined six other franchise law experts from around the world in the online discussion to weigh in on topics such as labour and joint-employer issues and recent franchising trends.
In Canada for example, Dillon says there seems to be a trend toward the franchising of professional services and in particular, accounting services.
“These professionals want the expanded brand power and resources that come from a franchise organization, while retaining the independence of an independently owned and operated office at the franchisee level.”
Also, he says, it seems like the Canadian market “can’t get enough” franchised food concepts.
“If I had a nickel for every new hamburger franchise that started up, I’d be wealthy. The trend generally is toward more niche marketing. So the burger concept sells organic beef with a complex menu to cater to discerning burger diners. Staying with the food segment, there is also a discernible trend toward organic food generally. Several new concepts I’ve seen include home delivery of organic, gluten-free, antibiotic-free etc. fresh or frozen foods,” says Dillon.
You can read all of Peter’s comments on disclosure requirements at AdvocateDaily.com.