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|Ontario Court Finds that Material Omission in Franchise Disclosure Document Provides Only 60-Day Rescission Right|
Sarit E. Batner, Helen Fotinos, Brooke MacKenzie, Adam Ship; McCarthy Tétrault LLP;
April 25, 2014, previously published on April 23, 2014In a significant recent decision, the Ontario Superior Court of Justice granted partial summary judgment in Caffé Demetre v. 2249027 Ontario Inc. the first franchise rescission claim to be decided since the new summary judgment test was set down by the Supreme Court of Canada in Hryniak v....
|Sioux City Approves Franchise Fee Settlement|
Sutherland Asbill Brennan LLP;
April 24, 2014, previously published on April 22, 2014As cities across Iowa face lawsuits over allegedly excessive franchise fees, Sioux City, Iowa, has agreed to settle and absorb the cost of nearly $6.5 million in refunds to be paid to residents who were overcharged for franchise fees on their utility bills.
|B.C. Even Closer to Enacting Franchise Legislation|
Jordanna Cytrynbaum, Miriam Isman, Adam Ship; McCarthy Tétrault LLP;
April 23, 2014, previously published on April 3, 2014British Columbia has no special franchise legislation - franchise relationships are governed by the terms of franchise agreements and the common law of contracts. However, a new report reveals that interested parties are largely in favour of changing this regime through the introduction of...
|New York Tax Reform Made Easy: Business Income Base and Tax Rate|
Sutherland Asbill Brennan LLP;
April 17, 2014, previously published on April 15, 2014The New York State Governor and Legislature recently enacted the 2014-2015 New York State Budget, Senate Bill 6359-D and Assembly Bill 8559-D (Budget), which results in the most significant overhaul of New York’s franchise tax on corporations in decades. In this edition of New York Tax Reform...
|The British Columbia Law Institute Recommends Franchise Legislation in that Province|
Frank Robinson, Derek Ronde, Geoffrey B. Shaw, Rebecca Valo, Larry M. Weinberg; Cassels Brock & Blackwell LLP;
April 16, 2014, previously published on April 11, 2014After months of consultation with industry stakeholders, the British Columbia Law Institute (“BCLI”) has issued its Report on a Franchise Act for British Columbia (the “Report”), which makes a recommendation to the Government of the Province of British Columbia to enact...
|Teaching Old Dogs New Tricks - Changes to The Canada Small Business Financing Regulations|
Jonathan Fleisher, Keri Wallace; Cassels Brock & Blackwell LLP;
April 16, 2014, previously published on April 9, 2014The Canada Small Business Financing Program (“CFBFP”) was first introduced over 40 years ago by the Federal Government to provide small and medium sized businesses greater access to financing, through this government guaranteed loan program. When initially introduced, banks readily...
|Incorrect Turnover Projections Can Justify Damages Claims - Franchise Law|
Michael Rainer, Michael Rainer; GRP Rainer LLP;
April 4, 2014, previously published on April 4, 2014If a franchisee is not informed that turnover projections are based merely upon estimations then it is entitled to damages claims with respect to the turnover figures that have not been achieved.
|Tesla Disrupts Old School Dealer Model|
Jeffrey A. Soble; Foley & Lardner LLP;
March 25, 2014, previously published on March 24, 2014The staggering pace of innovation has led to a number of industries being disrupted by upstarts providing similar services or products outside of the established model. Want a taxi? Use Uber. Need a hotel? Try Airbnb. Looking to watch television or a movie? The choices are almost already endless:...
|Are You An Accidental Franchisee?|
Houser Henry Syron LLP;
March 10, 2014Think “Franchise”, and some of the major restaurant and retail chain logos likely spring to mind. While
this is correct, the types of businesses that qualify as a franchise extend far beyond what you might imagine. In reality, many different types of business relationships can result...
|Franchisor Issues in a Lease to a Franchisee: How to Avoid Allowing the Franchisor to Crash the Party|
David J. Tracy; Hinckley, Allen & Snyder LLP;
March 10, 2014, previously published on February 27, 2014This article will address issues which arise in the context of a lease by a landlord to a franchisee and the issues raised by a franchisor in a proposed addendum to the lease. The franchisor has legitimate interests it desires to protect. A well-structured document will allow those interests to be...