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Expertise / Sectors / Franchising

While franchising is an increasingly attractive business model for many businesses, franchise legislation in various Canadian jurisdictions imposes comprehensive disclosure obligations on franchisors. As a result, franchisors need counsel with in-depth knowledge of the province-specific requirements in each jurisdiction.

Blakes has expertise in in many different areas, including business, privacy, data protection, tax, competition, real estate, intellectual property and dispute resolution, enabling us to apply our legal skills and regulatory acumen to provide comprehensive, cost-effective service.
Clients benefit from our unmatched skills in preparing franchise disclosure documents and identifying disclosure exemptions, as applicable. They also benefit from our deep and broad-based industry knowledge gleaned from representing diverse industry sectors, including automotive, office services, hotels, restaurants (including quick-service restaurants), retail financial, security, furniture and home furnishings, corporate training, educational and other business, household, and personal services.

Relying on our expertise, franchisors and master franchisees across industries engage us to advise them on the establishment, operation, expansion, acquisition, post-acquisition restructuring and integration, disposition and termination of franchises. They also retain us to prepare franchise agreements, area development agreements and master licence agreements, including related documentation and to provide strategic advice on protecting, enhancing and exploiting their valuable portfolios of trademarks and other proprietary indicia in Canada. In addition, we regularly assist foreign companies with regulatory compliance and customizing their franchise agreements and disclosure documentation for use in Canada.
Blakes Franchising lawyers are knowledgeable about current and proposed Canadian franchise legislation, current case law and other developments impacting franchising in Canada. Blakes regularly advises clients on the application and implications of Ontario’s franchise legislation, as well as the franchise legislation enacted in Alberta, British Columbia, Manitoba, New Brunswick and Prince Edward Island.
Representing clients in all forms of dispute resolution, including class actions and other litigation, arbitration and mediation, Blakes litigators have enforced franchisor rights against former franchisees and infringers, as well as defended franchisors in actions brought by current and former franchisees.

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Recent Experience
  • The UPS Store, Inc. in renegotiating and renewing its Canadian master franchise arrangements and with respect to compliance with Canadian franchise legislation and Canadian law.

  • Imperial Oil on its sale of 497 Esso branded retail gas stations to five fuel distributors for approximately C$2.8-billion.

  • A Canadian master franchisee on its acquisition of franchise rights from a large U.S. restaurant franchisor.

  • Numerous U.S. and internationally based franchisors on the sale of franchises to Canadian and internationally based purchasers, securing trademark rights in Canada, and resolving disputes with current and former franchisees.

  • A large international franchisor of business services on the renegotiation of its Canadian master franchise arrangements.

  • Belron, owners of the Apple Auto Glass® and Speedy Glass® franchise systems, and other franchised businesses in Canada and internationally, providing general corporate advice and assistance relating to the positioning of franchise systems and franchise locations, regulatory compliance and the preparation of franchise documentation.

  • Maple Leaf Foods Inc. in respect of two franchise cases involving the Country Style Donuts franchise. Both cases involve allegations of breaches of the duty of good faith owed under the Arthur Wishart Act.

  • Timothy’s Coffees of the World Inc. on various franchise-related matters, including the defence of a suit brought by a franchisee after termination of a franchise agreement in connection with amounts allegedly overpaid by the franchisee.

  • A large U.S. hospitality franchisor on its acquisition of Canadian franchise rights.

  • A U.S. purchaser on its acquisition of a Canadian franchisor of weight-loss centres.

  • Maple Leaf Foods Inc. on its purchase of the Country Style Donuts franchise division and Canbrands International businesses.

  • A Canadian entertainment group on developing its corporate store and franchise network throughout North America and overseas.

Awards & Recognition

Blakes Franchising group is recognized as a leader by the following publications::

  • Chambers Canada: Canada’s Leading Lawyers for Business

  • The Canadian Legal Lexpert Directory

  • Who’s Who Legal Canada: Franchise

  • The Best Lawyers in Canada