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Tom B.
Tom B., Barrister & Solicitor
Category: Canada Law
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Experience:  25 years in practice
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Do franchise agreements between a Saskatchewan franchisee and

Customer Question

Do franchise agreements between a Saskatchewan franchisee and a Ontario franchisor follow the Ontario Arthur Wishart Act? I was told some older ones do but not sure where or how to find out.
Submitted: 1 year ago.
Category: Canada Law
Expert:  Tom B. replied 1 year ago.
Hello
I am humbled to say that I even got burned by a franchisor. Believing in a brand and promises is just not good enough.
Saskatchewan has little in the way of protections. The contract must read that the Arthur Wishart Act applies. This can be done but without such a statement in a franchise agreement, then it does not.
Just look at what franchisors are concerned with....
http://www.cfa.ca/advocacy/franchise-legislation/
Assume no rights and no protections without a skilled lawyer making it so in a contract.
Franchising can be a modern form of slavery without a good contract. I have seen robbery resulting in bankruptcy, divorce and even suicide.
Franchisors will balk and accuse the potential investor of not being with the "team". Perhaps you are not good enough to be with us! But, anyone who buys a franchise who does not rewrite the contract with a good franchise lawyer is playing with fire.
I am a lawyer and do franchise law a bit. But, I was a fool to trust my understanding and lost my shirt. If only I had invested a few thousand to get my own lawyer!
I guess you can pretty much get the essence of my answer :)
There are few protections but you can write any protection you want in a contract. Assume you may lose everything and protect yourself in contract. The SK government has not yet read the book on the misery that is possible so you have to include clauses you are comfortable with.
Research the franchise and talk to franchisees. My problem was that all of the franchisees where so afraid that they gave me good reviews. I thought they were happy until they went broke.
Be very careful.
Sincerely,
Tom

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