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Inside Internal Controls

News and discussion on implementing risk management

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franchisee

Ontario court declines to enjoin termination of franchise agreement

In the recent decision Azmoon Trading Inc. v. Caffe Demetre Franchising Corp., 2018 ONSC 2868 (“Azmoon”), the Ontario Superior Court of Justice dismissed a Franchisee’s motion for injunctive relief prohibiting the Franchisor from terminating the franchise agreement (the “Agreement”).

 

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Québec Superior Court reaffirms importance of franchisors keeping their invoices

The judgment in this case demonstrates that franchisors have to properly document the sales they make to their franchisees, by keeping the sales-related invoices, for example. Franchisors that follow that practice will not find themselves unable to prove their claims, thereby incurring serious financial losses.

 

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Is it ever wise for a franchisor to become a shareholder of its franchisees?

Is it a good idea for a franchisor to become a joint shareholder in the franchised businesses of its network? Sometimes yes, and often not. It depends… mostly on the franchisor!

 

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