Franchising – Get in on the Act

As the largest market in the country, Ontario offers both franchisors and franchisees some outstanding opportunities. But with the opportunity comes the task of complying with a regulated franchise industry that is far more demanding than most other markets. Our team’s comprehensive understanding of the Arthur Wishart Franchise Disclosure Act 2000 has enabled us to assist out of province franchisors to effectively establish their presence in Ontario and to help many successful Ontario businesses on their way to creating and selling their first franchises.

Specific services for franchisors include:

• Consultation on preparing the business for franchising and system start-up
• Preparation of the franchise disclosure documentation, franchise agreement and other related agreements
• Sales and purchase agreements for the franchise and conducting due diligence on the franchisee
• Legislative compliance
• Franchise dispute resolution

We have also helped many business people contemplating an investment in a franchise navigate the complex process. If you are considering becoming a franchisee, our team can help ensure your investment is sound.

Our services for franchisees include:

• Review, advise and negotiate on your behalf the details of the franchise and other related agreements
• Advise on the purchase and sale agreement
• Franchise dispute resolution
• Franchisee association representation
• Legislative compliance

If you are exploring franchise opportunities in Ontario a member of our franchise team would be pleased to help.

Recent Franchise Experience

Expanding Lean and Fit
Kelly Santini LLP represents many franchisors. One success story is Canadian fitness specialist Tony Greco and the franchising of the Greco Lean and Fit Centres. We have advised on all aspects of franchising the business including drafting the franchise agreement and disclosure documents, preparation of security, closing of transactions with franchisees and ensuring the on-going compliance with Ontario’s strict franchisor legislation.  The first franchise was sold in 2007, which was followed by six additional locations with more planned for 2012.

Forming a Franchisee Association
The firm also represents franchisee associations. For instance, Kelly Santini currently represents over forty franchisees of a successful health & fitness business. Advice has included the formation of their franchisee association, reviewing the franchise agreements, disclosure documentation and other day-to-day advice.

Nothing Fishy Here
In 2010, Kelly Santini LLP began working with well-known Ottawa retailer Lapointe Fish as it began to franchise its successful business.  One franchise was launched that year and two more followed in 2011.  The firm’s advice to Lapointe Fish has included the preparation of franchise agreements and disclosure documentation, taking security and closing transactions with franchisors.  The firm continues to provide advice on an on-going basis to Lapointes and the wholesale side of its business.

Advice for Investors Buying First Franchise
Kelly Santini LLP has acted for many entrepreneurs taking their first steps into franchising and assisted them in assessing and understanding the details of the franchisor’s disclosure documentation and the obligations of each party as set out in the franchise agreement.  In the past few years clients of the firm have purchased a number of different franchises in a range of sectors including fast food, leisure, and retail.