Franchising entails having to deal with a lot of complex legal documents, one of them is the Franchise Agreement. Before signing any of these legal documents, a franchisee should be certain that he understands what he is getting into. Franchising in Canada is governed by both federal and specific provincial laws. A good example would be the provinces of Ontario and Alberta, where franchisors are mandated by law to submit disclosure documents for the franchisee’s review, at least 14 days before any agreements are signed. Disclosure documents are usually written to benefit the franchisor, although they may also be of help to the franchisee when he or she assesses the nature of the investment. Hiring a good Canadian Franchise Lawyer is one of the best ways to protect the interests of a potential franchisee.

One important consideration for the franchisee to take into account is ownership and control of the franchise trademark.The Toronto Lawyers can help his client search the Canadian Trademarks Office database, where the status of any filed and registered trademarks can be found.

It will definitely work to the first-time franchisee’s advantage if he does some research to learn as much as he can about the franchising business.Working with franchise attorneys who can help the franchisee understand his legal obligations.This can help minimize any risks. It is always best to investigate before investing. The franchising lawyer can also help the franchisee understand the Franchise Agreement, as well as review and negotiate it on behalf of the latter.

Another matter that should be considered by Canadian potential franchisees is US-based franchisors. When dealing with a US-based franchisor, the franchisee should make sure that the franchise agreement has been modified to comply with Canadian laws, customs, and practices. Some franchise agreements may still contain U.S. legal concepts that are not applicable in Canada, or may omit necessary Canadian concepts. Canadian franchise attorneys can alert their clients on these matters, and discuss them with the franchisors.

A franchise lawyer can also counsel the franchisees on the following matters: franchise fees and royalty rates; how advertising funds are to be spent; control of the franchise location lease; percentages of rebates from suppliers; extent of the franchisor’s discretion or right of approval; ease of reselling or renewing the business franchise; rights to buyng the franchise business itself; and how the Alberta Franchise Act and Franchise Act of Ontario may affect the franchise.