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FAQs

I’ve been told that my distribution agreement is a franchise agreement. How can that be?

Many distributor arrangements may, in fact, qualify as “franchise” arrangements in the five Canadian jurisdictions (Ontario, Alberta, Manitoba, New Brunswick, and Prince Edward Island) that currently have franchise-specific laws in place. If you are found to be a “franchise” in any of these jurisdictions, you must comply with the requirement to provide a prospective franchisee with a comprehensive, presale disclosure document or risk substantial consequences, including personal liability. Anyone distributing products or services in the five Canadian provinces that have franchise-specific legislation should have their distribution arrangements reviewed to determine whether they qualify as a franchise.

© 2015 Lawrence, Lawrence, Stevenson LLP

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43 Queen Street West, Brampton, ON, Canada L6Y 1L9
Telephone: 905.451.3040 Fax: 905.451.5058 Email: lls@lawrences.com

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