Franchise & Distribution Law

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

Colleagues at business meeting in conference roomIn 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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Corporate / M&A Law, Franchise & Distribution Law

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

deal-breakerThe 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. Continue reading