Canada: Franchising

A foreign franchisor has delivered a compliant Franchise Disclosure Document to a promising Canadian candidate. The fourteen-day period is running. Site selection is underway. Then, eight days in, something happens: the landlord renegotiates a lease term, a key supplier is replaced, an executive who is named in the disclosure document resigns, or the franchisor is served with a claim that did not exist when the FDD was assembled.

One of the most important — and least understood — aspects of Canadian franchise law is the potential for personal liability arising from franchise disclosure obligations.

Over the past decade, professional sports teams have evolved into one of the most compelling alternative asset classes in global finance. Once regarded primarily as trophy assets, sports franchises are now increasingly recognized for their long-term appreciation potential and strategic role within diversified investments.