The legal resignation meeting described in the law is very different from the means of resignation available at any time for reasons of fairness. Unlike the resignation of an equity decision, which brings both parties back to the status quo ante, the remedy of Article 6(6) of the Law generally has the effect of making the franchisee less well off. In addition, the resigning franchisee may sometimes find himself in a better position than when buying the franchise, at least on the basis of the current state of the case law and the current text of the law. While each case of franchise termination is different, there are a number of common documents that the attorney may want to obtain at an early stage in a commitment from the franchisee. Assuming that the franchisee has provided relatively complete statements of its expenses, which appear to be significantly higher than the reported revenues. Unfortunately, this can only be half the way. In the example below, the four paragraphs of paragraph 6, paragraph 6, put the franchisee back in its original financial situation. But what about the franchisor? The obligation on the franchisee to bear the franchisee`s start-up costs referred to in point (a) of paragraph 6(6) shall have the effect of placing the franchisee in the same position as the franchisee with regard to those items: the same position in which he would have insinqué if the franchisee had never acquired the franchise. Franchisors should keep in mind that they cannot invoke this exception if the confidentiality agreement in question requires the franchisee to keep confidential information that, in accordance with the specifications of the law, is not or is no longer confidential information. The amendments now allow a franchisor to require a franchisee to sign a confidentiality agreement and a site selection agreement during or before the 14-day period. Confidentiality agreements must meet certain criteria. You cannot It is advisable that source documents be requested for all hardware objects. This may include invoices and contracts related to the first acquisition of the franchise, as well as investments, loan agreements, T4 summaries and (sometimes) periodic sales reports prepared, for example, for the franchisee.
The amendments update several existing cases in which a franchisee is not required to provide a disclosure document to a potential franchisee or otherwise comply with the disclosure obligations set out in Division 5 of the Act. In particular, the amendments update the following exceptions: (2) A franchisee may send a disclosure document to a potential franchisee by mail if the franchisee pays the delivery costs. O. Reg. 164/16, p. 2. Paragraph 6(c) also refers to `supplies and equipment` which had to be purchased `in accordance with the franchise agreement`. . . .