Canadian Franchise Association to attend P.E.I. hearings

…some local franchisees are skeptical of the CFA’s role as it relates to them. They believe the association is in place mainly on behalf of the corporate head offices and they have little faith that it will do much of anything for them.

The Guardian
October 23, 2001

Canadian Franchise Association to attend P.E.I. public hearings
Islanders for Fair Franchise Law calling for provincial legislation, which will be discussed at hearings Oct. 25
Nancy Willis

Islanders for Fair Franchise Law are stirring the pot in the Canadian franchise world this month with their calls for provincial legislation to protect them as well as the head office companies.

Seventy Island franchise holders are involved in the new group calling for the creation of a Fair Franchise Act for Prince Edward Island.

They say the time for home turf legislation is long overdue. Without it, they believe the situation governing franchising in Canada is heavily weighed towards the head office side.

Public hearings are scheduled by Premier Pat Binns for Oct. 25 to study the issue and they are capturing the attention of everyone involved in the franchise game.

Chris MacLean, public relations officer with the Canadian Franchise Association in Ontario, said he and CFA president Richard Cunningham will be in Charlottetown to make their position known.

“We have a long history of working with governments in putting in provincial legislation and we would hope that if the Island government decides it needs it, that it will have consistency with other jurisdictions such as Alberta and Ontario where independent provincial law already exists,” said MacLean.

Without consistency, he believes there will be costs involved in dispute settlements and other issues that arise between franchisers and franchisees that will slow down business.

His organization also support pre-sale disclosure that gives business people the direction and information they need to make sound decisions when thinking of buying into a franchise operation, such as full disclosure of business activities, principals and a list of all franchisees.

MacLean said it is important for the new person to make calls to all those franchisees to see what their experiences with the company have been.

MacLean also believes it is important to get a lawyer who has experience in franchise law so the incoming franchisee will have full understanding and is comfortable with the agreement.

However, some local franchisees are skeptical of the CFA’s role as it relates to them.

They believe the association is in place mainly on behalf of the corporate head offices and they have little faith that it will do much of anything for them.

Alan MacPhee, co-owner of the Main Street Mall in Souris, said he does not expect the association to be a great supporter at the hearings.


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Risks: Canadian Franchise Association, CFA, Franchisor association not trusted by franchisees, Franchisors want the minimum regulation they can get away with, Disclosure laws: 10 per cent solution, Disclosure laws: False sense of security, Prince Edward Island Public Hearings, Canada, 2001, Dissident leaders, Canada, 20011023 Canadian Franchise

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