The Canadian Franchise sector is now the 12th largest segment of the Canadian economy, and is on track to reach $100 billion this year. In its 2019 report, the Canadian Franchise Association (“CFA”) has provided an economic forecast of the franchise sector in Canada.Continue reading
Andrae Marrocco, Co-Chair of the Franchise & Distribution Law Group at McMillan LLP, has been recognized in the 2019 Canadian Legal Lexpert Directory in the area of Franchise Law.Continue reading
Andrae Marrocco was the roundtable facilitator for the session: “Key Negotiation Topics in Development Deals Involving Sophisticated Private Equity Franchisees” at the 52nd Annual International Franchise Association Legal Symposium in Washington DC – May 5-7, 2019.Continue reading
Andrae Marrocco facilitated the Roundtable Discussion on the topic of “Quintessential Considerations for Implementing System-Wide Changes.”
The purpose of due diligence is to evaluate the nature and value of what is being acquired as well as to identify potential issues, risks, and liabilities. Put another way, a buyer’s objectives include ensuring that it receives the expected value in exchange for what it paid, evaluating any obstacles that may stand in the way of carrying out its strategic objectives for the business, and avoiding, ameliorating, or allocating as best as possible the risks associated with the acquisition.Continue reading
Maintaining robust data protection and privacy protocols is critical to the development and reputation of international franchise systems. Data breaches disrupt business operations, devastate the goodwill and reputation of a franchise brand, and often result in an inordinate degree of legal liability. In a landscape of ever-increasing privacy law regulation and scrutiny, it is imperative that franchisors develop and implement adequate policies and programs to ensure that their franchise systems safeguard personal information in compliance with applicable legal and regulatory requirements.Continue reading
3.4 billion people are active users of social media. The average daily time spent on social media is 116 minutes. The number of social media users has grown by over 300 million in the past 18 months, with a new social media user being added every 10 seconds. Franchise systems are increasingly taking advantage of social media to promote their products and services, to engage with customers and build customer loyalty, and to remain competitive.
Franchise businesses have increasingly become a focus of M&A activity. This is in part due to greater interest and investment from private equity.
The franchise business model is by its nature unique.
Understanding its framework – and its moving parts – is paramount when engaging in any franchise M&A transaction.
In this inaugural post of the series, we address 3 high-level considerations to bear in mind for a franchise M&A deal.