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The Franchise Memorandum

The Franchise Memorandum

Posts in International.
Posted in International

The Global Franchise Regulation Update (GFRU) is a well-known Lathrop GPM Franchise & Distribution publication that is updated and re-published around 3 times annually, most recently on September 30, 2021.

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A Superior Court of Justice in Canada last week awarded a franchisor over $1.7 million in costs against the sole shareholder and guarantor of a franchisee that had been the named plaintiff in an unsuccessful class action against the franchisor. Pet Valu Canada Inc. v. Rodger, 2018 O.N.S.C. 3353 (Ontario Super. Ct. May 29, 2018). The class action had been commenced in 2009, seeking some $100 million, but was dismissed on summary judgment, with the franchisor receiving cost awards totaling $1,736,675 against the named plaintiff franchisee, a corporation. When the corporation failed ...

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In an important victory for franchisors, the Court of Appeal for Ontario has upheld a lower court’s decision dismissing Tim Hortons franchisees’ claims in a proposed class action. Fairview Donut, Inc. v. The TDL Group Corp., [2012] ONCA 867 (Dec. 7, 2012). As we reported in the April 2012 edition of The GPMemorandum, the Ontario Superior Court of Justice had dismissed a $2 billion action brought against Tim Hortons by a putative class of franchisees relating to Tim Horton's transition to a new donut production system and the pricing of its products.

The franchisees appealed the ...

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Posted in International

In a far-reaching decision with important implications for franchisors operating in Canada, the Ontario Superior Court of Justice last month dismissed a $2 billion action brought against franchisor Tim Hortons by a putative class of Canadian franchisees. Fairview Donut Inc. v. The TDL Group Corp., 2012 ONSC 1252 (Can LII). The decision addresses the pricing of products within a franchise system and the competitive impacts of vertical pricing and distribution under Canadian law. The court also provided the first guidance on a number of recent amendments to Canada’s Competition ...

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China’s Ministry of Commerce (MOFCOM) has adopted new Administrative Measures that clarify issues in question since MOFCOM published its original Administrative Measures in 2007. The new Measures became effective April 1, 2012. Our colleague Chen Biaochong, of the Jun He law firm in Beijing, has provided a summary of the new Measures, which have yet to be published in English. The principal changes are:

  • Article 5.4 of the 2007 Administrative Measures requires franchisors to disclose information about an affiliate of the franchisor if the affiliate supplies products or ...
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Regulations interpreting the disclosure requirements for franchisors which offer and sell franchises in Manitoba were proclaimed April 7 and will become effective October 1, 2012. Even franchisors that are offering master franchises for territories which may include Manitoba should consider amending their Canadian FDDs to reflect the Manitoba requirements. The law applies “if the franchised business is operated, or is to be operated, partly or wholly in Manitoba.” The new legislation is substantively very similar to other franchise disclosure regulations in Canada.

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On February 1, 2012, amendments to China’s Commercial Franchise Registration Administrative Measures will become effective, clarifying the 2007 Measures. Among the clarifications in the 2011 Measures are:

  1. Foreign franchisors must register with the Chinese Ministry of Commerce (MOFCOM) in Beijing, not one of the provincial Commerce Ministries.
  2. Amendments to registrations must be filed when Chinese company registration information for the franchisor changes, when a change in the status of the franchisor’s intellectual property rights occurs, and when a change in the ...
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Last week, New Brunswick became the fourth province in Canada to enact a franchise disclosure law. Because the law became effective before many franchisors have updated their disclosure documents, franchisors either will have to update now to comply with the New Brunswick Franchises Act or postpone sales of franchises in New Brunswick until they update their disclosure documents.

What does this mean for franchisors offering and selling franchises in New Brunswick? All franchisors offering and selling franchises in New Brunswick must provide a disclosure document to a ...

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On June 3, 2010, the Australian federal government released new amendments to the Franchising Code of Conduct. The changes will take effect July 1, 2010. Some significant changes that franchisors need to be aware of include the requirement to:  (1) inform franchisees, at least six months prior to the end of the franchise agreement, of the franchisor's decision regarding the renewal of the franchise agreement; (2) disclose all payments that a franchisee may be required to make to third parties, where the expenditure is within the knowledge or control of, or is reasonably foreseeable ...

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In November, the Australian government announced its response to a previously published parliamentary report evaluating franchise regulations in Australia. In doing so, the government announced changes that are intended to strengthen the Australia Franchising Code of Conduct (the “Code”) and the unconscionable conduct provisions of the Trade Practices Act (the “Act”). While the government stopped short of adding a general obligation of good faith and fair dealing (despite intense political pressure), the government will enact the following changes in an attempt ...

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About this Publication

The Franchise Memorandum is a collection of postings on summaries of recent legal developments of interest to franchisors brought to you by Lathrop GPM LLP. 

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