Posts Tagged ‘franchise’

Franchising in Canada

Canada is now considered a leader in the franchising industry, with nearly half of all new retail businesses in Canada being franchised businesses. The time has therefore never been better to consider and explore international expansion by penetrating the Canadian market.Whether you are a seasoned international franchisor or franchising for the first time, there are a lot of business and legal issues to consider when franchising in Canada. This includes cultural challenges, disclosure compliance, anti-trust laws, and intellectual property protection. It is advisable to consult with a Franchise Attorney before setting up your franchise in the country, as franchisors operating in Canada are subject to both federal and provincial laws. Your attorney can help you understand these legal considerations.

Licensing, franchise & distribution, intellectual property, multi-level marketing, general corporate commercial law, and transporting franchise systems into and from Canada are some of the fields of law related to franchising. Most franchise attorneys are able to provide a complete range of legal services related to franchising, including document preparation, analysis, and advice.

A good franchise lawyer is a specialist in his field who is able to meet the needs of various clients. For instance, a startup franchise system may need help with drawing up documentation to sell franchises; a mature international franchise system may want to penetrate the Canadian market; a prospective franchisee would possibly need assistance reviewing documents provided by the franchisor. A franchise attorney with business experience in franchising is a big plus, since he will be able to give his clients first-hand advice based on his own business experience.

Trademarking and protecting intellectual property are important considerations when one puts up any kind of business. A franchise attorney who is also a registered Canadian trademark agent will be able to properly register the business trademarks, and protect his client’s business from infringement anywhere in the world. The lawyer can also provide advice on copyrights, industrial design, and patent issues.

Why Franchise in Canada

Nearly half of all new retail businesses in Canada are franchised businesses, and Canada is now considered a leader in the franchising industry. Now is, therefore, an opportune time to consider expansion by penetrating the Canadian franchise market.There are a lot of business and legal issues to consider when franchising in Canada. This is true whether you are a first-time franchisor or a seasoned international franchisor. Some of these issues are: disclosure compliance, anti-trust laws, intellectual property protection, and cultural challenges.  It is best to consult about these and other legal matters with a Franchise Attorney, who can advise you on how your franchise will be subject to both federal and provincial laws.

Licensing, franchise & distribution, intellectual property, multi-level marketing, general corporate commercial law, and transporting franchise systems into and from Canada are some of the fields of law related to franchising. Most franchise attorneys are able to provide a complete range of legal services related to franchising, including document preparation, analysis, and advice.

A good franchise attorney is a specialist in his field who is able to meet the needs of various clients. For instance, a startup franchise system may need help with drawing up documentation to sell franchises; a mature international franchise system may want to penetrate the Canadian market; a prospective franchisee would possibly need assistance reviewing documents provided by the franchisor. A franchise lawyer with business experience in franchising is a big plus, since he will be able to give his clients first-hand advice based on his own business experience.

Intellectual property is a vital consideration when starting any kind of business, and not just a franchise business. Trademarking and protecting intellectual property play an important role in protecting creative works and ideas from infringement anywhere in the world. A franchise attorney can dispense invaluable advice on copyrights, industrial design, and patent issues. A franchise attorney who is also a registered Canadian trademark agent can also protect his client’s business by properly registering and managing the business’s trademarks.

Franchising and Franchise Laws in Canada

Franchising is on the rise in Canada. Franchises make up nearly half of all new retail businesses in the country. Consequently, a lot of individuals and businesses are considering going into the franchise business.Before putting up a franchise business in Canada, a potential franchisor must first be aware of the different Canadian laws that concern the franchising business. A good way to do this is to hire a lawyer in franchise.

A Lawyer in franchise possess the expertise to offer their clients invaluable legal advice relating to the franchising industry in Canada, thus protecting their clients’ business interests. The services they provide are essential not only during the start-up stages of the business, but during the maintenance phases as well. These services include: preparing and reviewing disclosure documents; drafting, reviewing, and negotiating franchise agreements; registering and licensing trademarks; giving advice on application of franchise laws and regulations; and mediating or litigating commercial disputes, among others.

One important thing to note before putting up a franchise business in Canada is that some Canadian federal laws have a direct effect on the franchising business. Take, for example, the Competition Act, which prohibits a person who is engaged in the business of producing or supplying a product or service from influencing upward, or discouraging the reduction, of the price at which any other person offers to supply or advertise a product or service within Canada. What this means is, a franchisor is prohibited from establishing the lowest price at which its franchisee is to offer its products or services. Another example would be the Consumer Packaging and Labeling Act, which specifies guidelines for the packaging and labeling of products to be sold in the country. In case the franchisor is in the business of distributing imported goods, this law would require him or her to specify the country of manufacture, as well as the name and address of the importer, on the product label. Most elements of the labeling should also be written in both the country’s official languages: English and French.

These are just a few of the legal-related matters a potential franchisor or franchisee has to consider before starting to conduct business in Canada. Franchise attorneys will be able to answer business-specific queries or concerns.

-C.D.

What Are Qualities to Look for in a Franchise Buyer?

You need to look for the same characteristics has the person you would hire for opening another location. Like managers, individual franchise owners should have leadership, sales, and people skills, as well as physical stamina and job experience. Unlike managers, they will put up the capital as well. When the time comes to select franchise applicants, don’t be shy about
asking for detailed personal information such as school transcripts. 

Ideally you are seeking A students. A students often work for companies
managed by B students owned by C students. You are not looking for the person who likes to do things on the fly.” Nor do you want an entrepreneur eager to put his or her stamp on everything. Most A student candidates will have worked in structured environments for relatively long periods of time. They will tend to be comfortable following rules and regulations.

A good franchise prospect will have held jobs for at least three or four years and will have had several promotions. It’s helpful if the applicant has been married for a long time (it shows they can withstand pain). And indeed, individuals who have withstood the ups and downs of business and personal
relationships stand a good chance of being successful franchisees.

Check their driving record. This may not only reveal the tendency to speed and break other laws but alcohol or drug problems will show up. Their credit history should be checked.

Prospects who fail to make credit card or mortgage payments and other commitments on a timely basis may not pay their royalties on time either.

Have the person describe a typical day in their life. Someone who rides the train at 5:30 am train to work every day, returns home at 6:00 p.m.sits down for dinner, watches the news, surfs the web, goes to bed and on the weekends sits home and watches sports is not a good choice for a franchise buyer.
You want candidates who bowl on Monday nights, coach little league on Tuesday nights, serve on a church committee on Wednesday nights and on weekends are active with their families in the community.

Your franchisees will have to hire, train and motivate employees, interface with customers, vendors, and community organizations, unload boxes, be on their feet for long periods of time, and work long hours. Even though a franchise has a structured system like most new businesses will require this amount of time and effort to succeed.

You should always look to sell to an owner operator and not an absentee owner. Absentee ownership defeats the very purpose of franchising. An absentee owner just adds more to the cost of operation and takes away the advantage of an onsite owner. Owners – operators working in the business every day is the key to franchising.

Identifying and looking for the qualities listed above in a franchise buyer is absolutely necessary when considering the sale of a franchise. Your success as a franchisor is determined by the quality of people you sell too.

 

 

Handy Suggestions On Finding A Franchise

The following are beginner suggestions on finding a good franchise:

- Once you purchase a franchise, you sell goods and services that are already recognised and are given training and support that helps you succeed in your enterprise. However, not all concessions can be a sure-fire success. Buying a franchise allows you to operate a business and on paying a franchise fee of a few grand, you follow a format laid down by the franchisor and not your own.

– When you buy a franchise, remember that the franchisor usually controls the conduct of the venture to ensure uniformity in all the outlets. With these controls, you may find it hard to restrict your exercising your own ideas and judgement.

– Ask other companies about the pros and cons of joining a certain franchise before putting in time and money. Even ‘though you will have support and help and a plan if you commit to a franchise, there will still be hard work. Study up on each franchise since they will present different pros and cons and evaluate each one and discover a franchise that gives you a great package and has an operating system in place and be sure they’ll guide and train you.

– Experience: Have you experience in the industry of the franchise you wish to buy? If not, have you thought about working in that type of venture before committing to acquiring a franchise in that area?

– Support. Different franchise vendors have their own forms of support in order to assist a new venture owner get his business off the ground. When starting a franchise discover what form of support the franchise seller offers and decide which franchise vendor proffers more support and training benefits for the amount of moolah invested.

– Established Businesses. It’s wise to invest in concessions which have a long-standing reputation and which have had years of success because these companies will do the most to assist their franchise buyers and help them avoid failing so as to to preserve their reputation. The wealth of experience they have and the amount of support they’re willing to provide rubs off on anybody looking at starting a franchise through them.

– Experience. Some enterprise fields need a greater measure of expertise than others. Starting off in an enterprise minus prior knowledge or experience is dubious. Of course you can learn on the job or as the enterprise grows but this is a costly choice. Acquiring a franchise venture gives you the opportunity to benefit from the support and training provideed by the franchise seller. It also assists you in avoiding common pitfalls associated with the business; that way you can profit with fewer mistakes.

– Ascertain how long the franchise has been in a franchise system since more recent franchises are more of a risk to try. Remember that by buying a franchise you join a system that works, that worked out the problems that abound in a new business and has an established brand and lots of marketing already done. However, even if they’ve been around for a long time does not mean they are successful by default.

– Conditions: You should know the exceptions and conditions associated with using the brand. Also ask whether the franchise vendor owns copyrights or patents on the equipment you will be using or the products you will be vending.

I hope these few beginner suggestions will help you in finding a money-spinning franchise.

About the author: Nick Svengali is an author for start a franchise and car insurance quotes web sites in London in the UK.

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