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Inside Internal Controls

News and discussion on implementing risk management

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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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