Our Focus
Corporate Counsel Services
Starting a New Business
Proprietary Rights Protection
Buying and Selling
Succession Planning
Business Transactions

Franchising is one of the fastest growing business formats in the world and franchised businesses are available in a variety of businesses. Franchising offers the benefit of an established product, a recognizable trade name or trademark, a patented product or service or an established business process.

Mr. Simpson has worked closely with both franchisees and franchisors. He served as General Counsel for a small but growing franchise company with operations in both Canada and the United States for over 5 years. During that time, he re-drafted the company’s Canadian standard franchise agreement and was responsible for establishing the company’s business in the United States, including U.S.-specific disclosure and franchising documents.

Buying a Franchise
Buying a franchise can provide an exciting new direction in your life. However, not all franchise companies are created equal and franchising is not for everyone. Mr. Simpson has both drafted franchise agreements for franchise companies and reviewed franchise agreements for prospective franchisees.

While most franchise companies have a standard-form franchise agreement, some companies will negotiate some terms and conditions. As well, you should clearly understand the franchise agreement before you sign it as it will govern how you run your business and may restrict other business and investment activities.

Selling a Franchise
Selling a franchise is not like selling other businesses. Usually, the franchise company will demand a transfer fee to compensate them for the change of ownership. This transfer fee can range from a fixed amount to a percentage of the sale price. Most franchise companies require that they approve any sale and they may set the sales price. Some franchise companies require that they conduct the sale.

If you are thinking about selling your franchise, you need to understand your obligations prior to and after the sale.

Operating a Franchise
An established, reputable franchise company should provide you with a proven business system. However, the uniformity that creates success for many franchised businesses can be too restrictive for some entrepreneurs. This can result in challenges for some franchisees and disputes between franchisees and the franchise company.

If you are struggling in your relationship with your franchisor or if you have questions about what you can and cannot do under the terms of your franchise agreement, call us.

Franchising Your Business
Are you considering franchising your business? Franchising will allow you to expand your business with fewer demands on capital and time than operating multiple corporate-owned locations. However, a franchisor must have in place effective systems and a sound structure to support the operations of its franchisees. Essential elements include a franchisee support program; an operations manual; a training program; control systems and forms; a supervisory program; and an appropriate organization.

Franchising your business is not a do-it-yourself project. We can help you avoid the pitfalls and the challenges of franchising.