Franchise rescission
Franchise & Distribution Law

A Word of Warning to Franchisors – ADR Provisions May Postpone the Limitation Period for Rescission

In the recent Ontario Court of Appeal decision in PQ Licensing S.A. v. LPQ Central Canada Inc. (“PQ Licensing”), the Court considered whether the mandatory mediation process prescribed by a franchise agreement impacted the limitation period applicable to a franchisee’s rescission claim.

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Deal Breakers for Investors Looking to Acquire Franchise Systems
Corporate / M&A Law, Franchise & Distribution Law

10 Potential Deal Breakers for Sophisticated Investors Looking to Acquire Franchise Systems

The investment community has been increasingly interested in franchise systems as potential targets. They present a valuable investment proposition for strategic and financial investors. The appeal of robust, long-term, and diversified royalty income streams, proven business concepts, potential for scalability and expansion, shared expansion costs (i.e. with franchisees), and the goodwill and strength of an established brand has caught the attention of private equity funds, family offices, and other sophisticated acquirers. The strategy and structure of investments is also becoming more creative and flexible as investors get more comfortable with the franchise business model, including investments at the master franchise level, and aggregation of brands in the same industry (or similar industries) to achieve economies of scale. However, sophisticated acquirers (as many know), explore, consider, and pass on far more opportunities than they take up. So what are the critical franchise specific considerations that raise red flags for sophisticated investors looking to acquire a franchise system?

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Franchise Times Legal Eagle
Franchise & Distribution Law

Andrae Marrocco named a 2018 Franchise Times Legal Eagle

Andrae Marrocco, Partner in the Toronto office of cross border law firm Dickinson Wright, has been selected as a 2018 Legal Eagle by Franchise Times. The annual list of Franchise Times Legal Eagles recognizes the best attorneys in franchising (across the US and Canada) as nominated by their clients and peers, and selected by the editorial board after additional research by Franchise TimesContinue reading

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