By Frank Zaid
Q: Can a franchisor deliver a disclosure document to a franchisee and sign a franchise agreement before a location for the franchise has been determined? In such situations, the FDD cannot include a copy of the head lease, of course, because it does not yet exist.
The Ontario Superior Court recently found franchisee Raibex Canada in Mississauga, Ont., was entitled to rescind its franchise agreement with All Star Wings and Ribs (ASWR) because the franchise location and the head lease were not established before the disclosure document was provided.
Throughout May, casual restaurant franchise system Browns Socialhouse opened three new locations in Grande Prairie, Alta., Langford, B.C., and Yorkton, Sask., bringing its tally up to 26 restaurants across the country.
Food-service franchisor CKE Restaurant Holdings plans to open 30 Carl’s Jr. burger restaurants across Ontario’s ‘Golden Horseshoe’ region over the next six years, starting with Toronto. CKE has signed an agreement with 6Points Food Services to develop, open and operate the restaurants.