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Franchising

29 October 2019
Bruno Floriani Franchisees can't have their cake and eat it too: statutory disclosure exemptions have consequences

Canada - Lapointe Rosenstein Marchand Melançon LLP

In recent years, many Canadian provinces have adopted franchise-specific disclosure laws with a view to remedying the inequality of bargaining power between franchisors and franchisees. Subject to certain limited exemptions, franchisors must provide prospective franchisees with full and accurate information in respect of all material facts relating to the franchise business before entering into a franchise agreement, failing which franchisees can bring a claim for rescission and damages against the franchisor.

Authors: Bruno Floriani, Marissa Carnevale, Tanya Nakhoul
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