Intelligent FranchisingTM - Spring 2010

Hoffer Adler LLP is please to launch our inaugural Intelligent Franchising™ newsletter. We hope that you and your colleagues will find the information interesting and useful.

From the Courts

Courts in Ontario and Alberta are increasingly ruling in favour of franchisees as they invalidate certain disclosure documents with serious and even less than serious deficiencies. For example, the Ontario Court of Appeal in 6792341 Canada Inc. v. Dollar It Ltd. (2009) ruled that an unsigned and undated certificate can constitute enough of a deficiency on its own to invalidate the disclosure document in its entirety.

In Sovereignty Investment Holdings Inc. v. 9127-6907 Quebec Inc. (2008), the Ontario Superior Court held that each of the following deficiencies on its own similarly invalidates a disclosure document, the franchisor’s failure to: (a) include its financial statements, (b) include a statement specifying the basis for the earnings projections, (c) provide the disclosure document as a single document and at one time; and (d) include its signed certificate of disclosure.

A recent ruling by the Ontario Superior Court of Justice in 405341 Ontario Limited v. Midas Canada Inc. ruled that a release demanded by a franchisor in a renewal or assignment scenario will not be enforceable when not in contemplation of a settlement of an outstanding claim. In light of this decision, franchisors should review their franchise agreements and consider ways of redrafting their releases so that they may be enforceable and not struck down on the grounds that they contravene the non-waiver provisions of the Arthur Wishart Act (Franchise Disclosure), 2000.

On the Legislative Front

New Brunswick Regulations to the Franchises Act (New Brunswick) are expected to be released by the Spring of 2010. Follow us on Twitter so that we may provide you with up-to-date information in this regard.

Bill 168, An Act to amend the Occupational Health and Safety Act with respect to violence and harassment in the workplace and other matters was enacted on December 15, 2009. The bill amends the Occupational Health and Safety Act (OHSA) and introduces a new legal scheme which governs workplace violence and harassment. [read more...]

The government of Ontario enacted the Accessibility for Ontarians with Disabilities Act, 2005 (AODA) in June, 2005, and in doing so, Ontario became the first Canadian jurisdiction to implement and enforce mandatory accessibility standards. The AODA calls for the development of “accessibility standards”, which will seek to identify and break down barriers for people with disabilities in various key areas of daily living. [read more...]

Protecting Your Brand

The Canadian Trade-marks Office (TMO) is changing its practice on granting extensions of time to respond to examination reports. Currently, multiple extensions of time are available if sufficient reasons justifying each extension are provided. [read more...]

Social media websites, such as Facebook™, LinkedIn™ MySpace™ and Twitter™, are forums to answer the question “what are you doing?” Increasingly, the question that brand owners should be asking themselves is “what should you be doing?” to protect your brands, intellectual property and businesses. For example, are there ways brand owners can try to protect their brands and intellectual property on social media websites? Is there a way to facilitate brand awareness in social media without losing control over your business’ trade-marks and other IP? Is it possible to protect your trade-marks and IP in “social media” without being anti-social? [read more...]

Firm News

Joseph Adler and Lorraine Fleck just returned from the International Franchise Association’s Annual Convention in San Antonio. Joseph co-facilitated a roundtable discussion on “Best Practices on Franchising in Canada” and our firm was one of the sponsors of the Taste of Franchising.

Joseph Adler was awarded a CFE designation (Certified Franchise Executive) (bestowed by the Institute of Certified Franchise Executives of the International Franchise Association) on February 7, 2010

Lorraine Fleck will be attending the International Trademark Association’s (INTA) 132nd Annual Meeting in Boston on May 22 – 26, 2010.

Our firm just “refreshed” our websites. Please visit each of our sites and tell us what you think of our new look.

 
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