In a franchise, the franchisor develops a business system, in association with a trade-mark, and licenses the use of that system to a franchisee, for a period of time. The franchisee is required to conform to the standards of the system and pay money to the franchisor such as initial franchise fee and royalties, on regular basis, as agreed.

The franchise law has evolved over a period of time. In Ontario the legislation imposes certain requirements/ obligations on the Franchisor and gives some rights/remedies to the franchisee.

If You Are A Franchisor

From franchisor’s point of view the franchise documents have to be drafted keeping in view the franchisor’s business intentions. Allocation of risk and responsibilities between the franchisor and the franchisee have to be clearly defined, and are to be in conformity with the law and the established legal regime.

If You Are A Franchisee

Similarly, from franchisee’s point of view a thorough understanding of the franchise system, documents involved, the kind of relationship evolved and inter-se rights and obligations of the respective parties have to be clearly understood.

How do we help

We at Toor Law Office help in preparing franchise related documents, establishing a new franchise system, and their need based review from time to time.