In this article you can read a very important case about where the Franchisor decided to start participating more ‘closely’ in the supply and distribution. d through
One of the key things to note is that this occurred in Ontario where there is regulation to help control abuses of Franchisors towards their Franchisees.
As you read through this landmark attempted class action case, one can learn endless things about the general way that most franchises are set up. Here are some key points to learn:
-You are bound to what you sign, so if you see a clause like ‘Franchisor might not necessarily pass on savings to the franchisee’ you may want to consider fleeing quickly and don’t go back for your coat or hat
-Franchisors are considered ‘captains of the ship’ and a judge seems to allow them some liberty to make decisions where ‘the end justifies the means’ so just because you, as a franchisee are getting a fairly raw deal doesn’t mean that you will win a court battle for your losses or ‘reduction in profit’
-if you are in a province that does not have a regulatory body that insists on things like disclosure statements by franchisors, then you need to fight tooth and nail until you have one, or join VCSFA and help us grow
If you didn’t read the article above directly, I again encourage you to take the time. If your English isn’t awesome, take the time to learn this important legal vocabulary because one day you may need to use it, though we hope you won’t.