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|Showdown in Harrisburg|
Ted P. Pearce; Nexsen Pruet, LLC;
November 7, 2013, previously published on November 5, 2013Like a strong marriage, a strong franchise relationship must be built on shared success. In the end, no relationship is likely to work out when one side holds all the cards.
|Are Your Licenses Really Franchises? How to Avoid Inadvertent Franchise Regulation|
Vorys Sater Seymour Pease LLP;
October 31, 2013, previously published on October 28, 2013To expand the scope of their business - either geographically or into additional product categories - many companies license their trademarks. Company "A" sells milk, for instance, and shipping milk far from its source of production may not make economic sense. A restaurateur wishes to...
|New SOP 50 10 5(F) Brings Major Changes for SBA Requirements|
Alison W. Rind, Arnold D. Spevack; Lerch, Early & Brewer, Chartered;
October 24, 2013, previously published on October 21, 2013The Small Business Administration’s New SOP 50 10 5(F) will become effective January 1, 2014. This latest version has significantly revised SBA requirements in both the 7(a) and 504 loan programs. This article highlights the most important changes in the program requirements.
|Ontario Court Rules there is No “Material Change” Where the Franchisee Had Knowledge of Changes|
Stefanie Holland; Cassels Brock & Blackwell LLP;
October 17, 2013, previously published on October 2013In 1201059 Ontario Inc. and Pizza Pizza Limited, the Ontario Superior Court of Justice addressed the disclosure obligations of a franchisor in the context of the renewal of a franchise agreement when the franchisee is required to incur substantial renovation costs to its business premises. In this...
|Ontario Court Grants Statutory Rescission for Multiple Disclosure Failures|
Christopher Horkins; Cassels Brock & Blackwell LLP;
October 17, 2013, previously published on October 2013In March 2013, the Ontario Superior Court of Justice released a new rescission remedy decision that underscores the serious consequences resulting to franchisors from deficiencies in their disclosure documents required under Ontario’s Arthur Wishart Act (“the Act”).
|Midas Franchisee Class Action Settled; Court Comments on “Development” in Jurisprudence Regarding Fair Dealing Claims|
Derek Ronde, Geoffrey B. Shaw; Cassels Brock & Blackwell LLP;
October 17, 2013, previously published on October 2013Over four years after the certification of the case as a class proceeding, and over six years after the action was commenced, the Ontario Superior Court of Justice approved a settlement of the class action brought on behalf of Midas franchisees against their franchisor regarding 2003 changes to the...
|Alberta Court Reminds Franchisors of the Importance of a Properly-Signed Disclosure Certificate|
Rebecca Valo; Cassels Brock & Blackwell LLP;
October 17, 2013, previously published on October 2013The recent case of 1448244 Alberta Inc. v Asian Concepts Franchising Corporation (“Asian Concepts”), a decision of the Court of Queen’s Bench of Alberta, serves as a reminder of the importance of technical compliance with the disclosure requirements in Canada, particularly those...
|Ontario Superior Court of Justice Enforces Non-Competition Covenant against Former Franchisee, Her Spouse, and Their Corporate Alter Ego|
Eric Mayzel; Cassels Brock & Blackwell LLP;
October 17, 2013, previously published on October 2013In Pet Valu Canada Inc. v. 1381114 Ontario Limited, the Ontario Superior Court of Justice granted Pet Valu’s motion for an interim injunction to prevent the operation of a competing business by a former franchisee, its principal, the principal’s husband, and their corporate alter ego....
|Use of a Computer Inventory Control System Based On a Franchise Agreement - Franchise Law|
Michael Rainer, Michael Rainer; GRP Rainer LLP;
October 8, 2013, previously published on October 8, 2013The right to use a computer inventory control system depends in particular on the provisions of the franchise agreement and any amendments thereto.
|Seven Strategic Steps to Avoid Franchisor Liability|
Susan E. Wells; Jaburg & Wilk, P.C.;
October 2, 2013One of the hallmarks of franchising is consistency of the brand and operations across the franchise system. If well executed, that consistency gives the public the impression that the franchise system is a centrally-owned operation. Most people don’t know the difference between business...