Corporate

Franchising

Many people looking to enter into a business are choosing to obtain a franchise. There are many issues associated with a franchise and 2020 Law Group has worked with both Franchisors and Franchisees in the development and review of the Disclosure Document, the Franchise Agreement and other documentation and agreements required in the operation of a franchise.

In advising a Franchisor or Franchisee, close attention is paid to the legislative requirements identified in the Franchise Act of Alberta and the guidance offered by the Canadian Franchise Association.

When representing a Franchisor, the 2020 Law Group works closely with the client to develop a strategy used to solicit Franchisees, sell Franchisees the opportunity offered by the franchise and to limit the liabilities associated with being a Franchisor. Once developed, the strategy is reflected in the Disclosure Document and the Franchise Agreement prepared by the 2020 Law Group.

When representing a Franchisee for a new location, the 2020 Law Group reviews the Disclosure Document and Franchise Agreement to determine whether these documents conform with the Franchise Act of Alberta and the Canadian Franchise Association standards. Often issues are identified in these documents that require discussion and negotiation with the Franchisor to have the language in the documents meet the Franchisee's needs. Many Franchisees also require guidance and direction in acquiring rights of a lease for the business location, securing of financing required for the purchase of the franchise and tax planning.

When representing a potential Franchisee for an existing location, the 2020 Law Group usually is asked to assist the client with the preparation of an Offer to Purchase and to obtain the documentation relating to the franchise from either the existing Franchisee or the Franchisor so that the rights and obligations contained in the Franchise Agreement are fully understood and followed by all of the parties.

If you are looking to purchase a franchise or are interested in transforming your existing business into a franchise, please call the 2020 Law Group at 730-2020.