Franchise Business in the US and Canada: national specifics

Franchising is a very common format for doing business in America. This is not surprising, because the world-famous franchise pioneers are companies established in the US: Singer Sewing machine company, General Motors and McDonald's. Canada due to geographical proximity was the first platform for the global expansion of American brands. For example, the first McDonald's outside the US was opened in Canada.

Doing Business in America, particularly in Canada and the U.S. have common features. To start a franchise business in Canada, you need to adhere to a set of legal requirements. First of all, the trademark must be registered in the Canadian Intellectual Property Office. Then you should create a subsidiary to manage business operations. However, local law permits control of franchise network overseas. World Franchise Solutions experts warn entrepreneurs about the necessity to check up all the documents thoroughly with the help of experienced accountants and lawyers to avoid fraud schemes.

To avoid fraud transactions, you should make up a draft of franchise agreement in conjunction with a lawyer who specializes on intellectual property issues. Franchise agreement should contain detailed information about the rights that franchisee accrues. All franchisors - members of CFA, execute a special document FDD (Franchise Disclosure Document). It sets out the conditions, the cost of co-operation and other information. If you hesitate about the conclusion of franchise agreement - consult with fraud examination experts. They will prove the legality of transaction.

FDD is a mandatory document for 3 Canadian provinces of Ontario, Alberta and Prince Edward Island. The document must be provided to franchisee not later than 14 days before the implementation of the agreements or any payments. Each Canadian province has its own legislation, so before you begin to develop a ready business in Canada, it is necessary to seek for legal advice. Those, planning to build a business in Quebec, should keep in mind that the main language in this province is French. It means that all documents needed to be translated into French language to protect the trademark. If you have some problems with franchise agreement - turn to forensic accounting services.

Courtney Medina in cooperation with Clifford Pittman, formerly with office space lease company.

Read more about legal and accounting assistance in franchise deals.

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