Complaint letter to Canadian Franchise Association, Grand & Toy

On June 13, 2001, Mr. Peter Vanexan G&T’s president announced that all franchise agreements that would have been renewed on December 31, 2001, would not be resigned. This unilateral decision of abandonment would terminate the franchise relationships that have existed with some 23 Ontario licensees since 1993.

Canadian Alliance of Franchise Operators
September 23, 2001

Complaint to CFA

Grand%20%26%20Toy%20franchising.jpg

on behalf of Grand & Toy Licensee Association

Canadian Alliance of Franchise Operators
1201 Bayfield Street North
Midhurst, ON
L0L 1X1

September 23, 2001

Facsimiled to: 905-625-9076

Mr. Richard Cunningham
President
Canadian Franchise Association
2585 Skymark Avenue, Suite 300
Mississauga, Ontario
L4W 4L5

REGARDING: Complaint against Grand & Toy Limited

Dear Mr. Cunningham,

Please accept this complaint regarding your member Grand & Toy Limited (G&T). G&T is a member of your association and we reference your Code of Ethics as attached.

The Grand & Toy Licensee Association (GTLA) is a franchisee association and a member of the Canadian Alliance of Franchise Operators. We are acting on the GTLA and it’s member’s behalf in this matter.

On June 13, 2001, Mr. Peter Vanexan G&T’s president announced that all franchise agreements that would have been renewed on December 31, 2001, would not be resigned. This unilateral decision of abandonment would terminate the franchise relationships that have existed with some 23 Ontario licensees since 1993.

Mr. Vanexan stated that one of the reasons the franchisee termination decision was made was because G&T refuses to provide disclosure information as required under Arthur Wishart Act (Franchise Disclosure), 2000.

Grand & Toy Limited refuses to negotiate compensation for their decision. It would appear that G&T believes it is a franchisor’s right to expropriate a franchisees’ business without compensation.

It is GTLA’s and CAFO’s position that this action by G&T violates your Code of Ethics (Section Five, “Fairness shall characterize all dealings between franchisor and franchisee.”). Furthermore, we believe that this action is not fair or in good faith and does not meet the commercially reasonable standard as defined in Section 3 of the Arthur Wishart Act (Franchise Disclosure), 2000.

We would appreciate you providing a complaint status report in writing as soon as possible.

Sincerely,

Les Stewart
President
Page 1 of 3
Attachment

cc: Mr. George J. Harad
Chairman of the Board & CEO
Boise Cascade Corporation

Mr. Christopher C. Milliken
President & CEO
Boise Cascade Office Products

Mr. Stephen Iskierski
National Banking Services
Bank of Montreal

Hon. Michael Harris, MPP
Hon. Norman Sterling, MPP
Mr. Tony Martin, MPP
Mr. Mike Colle, MPP
All MPPs

Mayor Bob Chiarelli
Mayor Mel Lastman

Media

Canadian Franchise Association
Code of Ethics

One Franchisor members shall fully comply with Federal and Provincial laws and the policies of the Canadian Franchise Association requiring advance disclosure of information or documents to prospective franchisees. Full and accurate written disclosure of all information considered material by the franchisor to the matters required to be disclosed shall be given to prospective franchisees a reasonable time (at least fourteen (14) days) prior to the execution of any binding unconditional document pursuant to which financial consideration is payable but not refundable.

Two All matters material to the franchise relationship shall be contained in one or more written agreements, which shall clearly set forth the terms of the relationship and the respective rights and obligations of the parties. An example of a material matter is the use by the franchisor of advertising and other pooled funds which are administered by the franchisor for the benefit of the system, and whether or not the franchisor is obligated to disclose the receipts and disbursements of such funds.

Three A franchisor shall select and accept only those franchisees who, upon reasonable investigation, appear to possess the basic skills, education, personal qualities and financial resources adequate to perform and fulfill the needs and requirements of the franchise. There shall be no discrimination by a franchisor or an affiliate member based on race, colour, religion, national origin, disability, age, sex or any other factors prohibited by law.

Four A franchisor shall provide reasonable guidance, train-ing and supervision over the business activities of franchisees for the purpose of safeguarding the public interest and of maintaining the integrity of the franchise system for the benefit of all parties having an interest in it.

Five Fairness shall characterize all dealings between a franchisor and its franchisees. Where reasonably appropriate under the circumstances, a franchisor shall give notice to its franchisees of any contractual default and grant the franchisee reasonable opportunity to remedy the default.

Six A franchisor shall make reasonable efforts to resolve complaints, grievances and disputes with its franchisees through fair and reasonable direct communication and where reasonably appropriate under the circumstances, alternative dispute resolution mechanisms.

Seven A franchisor and an affiliate member shall encourage prospective franchisees to seek legal, financial and business advice prior to signing the franchise agreement.

Eight A franchisor shall encourage prospective franchisees to contact existing franchisees to gain a better understanding of the requirements and benefits of the franchise.

Nine A franchisor shall encourage open dialogue with franchisees through franchise advisory councils and other communication mechanisms. A franchisor shall not prohibit a franchisee from forming, joining or participating in any franchisee association, or penalize a franchisee who does so.

Ten An affiliate member in providing products or services to a franchisor shall encourage the franchisor to comply with the letter and spirit of this Code of Ethics. An affiliate member shall not offer or provide products or services if legislative or professional qualification is required to do so unless the affiliate member has such qualification.

Source: http://www.cfa.ca
September 4, 2001


Brought to you by WikidFranchise.org

Risks: Bank of Montreal, BMO, Write a letter of complaint, Canadian Alliance of Franchise Operators, CAFO, Les Stewart, Canadian Franchise Association, CFA, Arthur Wishart Act (Franchise Disclosure), 2000, Canada (Franchise Disclosure), 2000, Canada, Code of ethics, almost never enforced, Expropriation without compensation, Code of ethics, a joke, Refuses to accept complaint, Refuses to investigate complaints, Complaint letter to franchisors trade association, Canada, United States, 20010923 CFA Complaint

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License