Franchisee Basics: The Franchise

Beginning a new franchise can be extremely challenging, making the professional advice of a franchise lawyer invaluable.

Contact Neufeld Legal PC for franchising legal matters at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com

A franchise is a legal arrangement that is determined by the franchising legislation of the jurisdiction within which the business arrangement and operations occurs, such that the arrangement can exist even if the parties are not aware of there being a franchise arrangement or the parties may have sought to contract out of a franchise arrangement, the franchising legislation takes precedence and imposes a franchise arrangement upon the parties and all the legal obligations attendant thereto.

As such, it is essential to looking at the jurisdiction's franchising legislation, as exemplified for Alberta franchisees by the Alberta Franchises Act, which defines franchises at section 1(1)(f) as:

Franchise "means a contract, agreement or arrangement, either expressed or implied, whether oral or written, between 2 or more persons by which a franchisee is required to pay directly or indirectly a franchise fee in consideration for any of the following:

(i) the right to engage in the business of offering, selling or distributing the goods manufactured, processed or distributed or the services organized and directed by the franchisor,

(ii) the right to engage in the business of offering, selling or distributing any goods or services under a marketing plan or system prescribed or controlled by the franchisor,

(iii) the right to engage in a business which is associated with the franchisor's trademark, service mark, trade name, logotype, advertising or any business symbol designating the franchisor or its associate,

(iv) the right to engage in a business in which the franchisee is reliant on the franchisor for the continued supply of goods or services, or

(v) the right to recruit additional franchisees or subfranchisors, but excluding contracts, agreements or arrangements between manufacturers or if the franchisor is the Crown, a Crown agency or a municipal corporation."

Christopher Neufeld is a business lawyer knowledgeable in the rigors and challenges of the franchise business, together with the legal constructs that are critical to their effective operation. For experienced legal representation in starting, acquiring / selling, operating and managing a franchise, contact franchisee lawyer Christopher Neufeld at 403-400-4092 [Alberta], 905-616-8864 [Ontario] or Chris@NeufeldLegal.com.

The Basics to Becoming a Franchisee: Embarking on the path of becoming a successful franchisee demands an incredible amount of time and effort, given that there are only a limited number of truly successful franchisees, with those that have set themselves apart and hit the pinnacle of franchise operations and profitability. This begins with understanding the core concepts of a business franchise. Read more.

 

Contact us via email at chris@neufeldlegal.com or call 403-400-4092 / 905-616-8864.