The B.C. Ministry of Small Business and Red Tape Reduction announced today that the new Franchises Act and the Franchises Regulation will come into effect on February 1, 2017. The Franchises Act is intended to “provide important legal protections for British Columbia-based franchisees who operate a franchise”. The Act largely mirrors legislation already in force in ...
It’s common practice in Canada to enter into a franchise agreement before determining the location of the franchise – the franchisor and franchisee typically agree that the franchisor will use “best efforts” to find a suitable location for the business, often with the franchisee’s input and participation. Once the location is determined, it is common for the ...
A recent case from the Ontario Court of Appeal suggests franchisors may lose the protection of a restrictive covenant in a franchise agreement if, at the time the franchisor wants to enforce the covenant, it can’t establish a “legitimate or proprietary interest to protect” within the territorial scope of the covenant.
In MEDIchair LP v. DME Medequip Inc., 2016 ONCA ...
On Tuesday October 20, 2015, Bill 38, the Franchises Act, successfully passed third reading. The Government of British Columbia first introduced the bill on October 6, 2015, and it is now in its final stage of enactment. The Franchises Act will come into force upon Royal Assent which is expected to be granted towards the end of 2016 or early in 2017.
Once in force, the ...
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