Cassels Brock expert provides top tips for franchisees/franchisors
TORONTO, Oct. 22 /CNW/ - Economic downturns are accompanied by the loss
of jobs. But as employees exit former jobs - sometimes with severance packages
in hand - the idea of purchasing a franchise is often considered.
That's according to Larry Weinberg, partner, Cassels Brock & Blackwell
and chair of the firm's Franchise Law Group. The franchise industry may be
attractive to people looking for work because "it allows people to be in
business for themselves - but not by themselves," noted Mr. Weinberg.
Here, he offers franchisors and franchisees top tips on how to make the
1. Understand the relationships. A franchise can provide
independence, but with the support and direction of a head office.
"It's the logical step to being in business for the first time by
yourself," Mr. Weinberg explained. However, it's important both
franchisees and franchisors understand that tough economic times
affect almost all industries. "Even coffee shops are not
guaranteed gold mines," he added.
2. In the regulated provinces of Ontario, Alberta and P.E.I.,
franchisors need to present franchisees with 'disclosure
document' information packages relating to the franchise being
purchased. Full disclosure of all material facts must be provided
on the company and the franchise. Prospective franchisees in all
provinces should ask for this package, and about the economic
forecast for the specific industry so both sides have realistic
3. Understand where financing will come from. Franchisors and
franchisees should be ready for the challenge this may present and
this should be addressed early in the process. Government
guaranteed small business loan programs are available, but
potential purchasers must qualify.
"In tough times, people lose jobs and need to work. Some turn to
franchising. It's important for both sides to go into this arrangement
understanding the roles and responsibilities," Mr. Weinberg added.
Cassels Brock will present an information session on the legal aspects of
purchasing a franchise at the upcoming Canadian Franchise Association's
Franchise Show in Toronto, running Sat., Oct. 25 and Sun., Oct. 26 at the
Toronto Congress Centre.
About Cassels Brock
Cassels Brock & Blackwell LLP (www.casselsbrock.com) is a full-service
law firm with more than 200 lawyers working in its Toronto office. The firm
provides legal advice to clients including entrepreneurs, mid-market
enterprises and multinational corporations.
For further information:
For further information: To interview Larry Weinberg please contact:
email@example.com, (416) 860-2987 Or Teresa Donia, iAMBIC
Communications, (905) 508-5550 or firstname.lastname@example.org