Martin moves to protect franchise owners

"Country Style Donuts has declared open season on its Northern franchise owners — and there's nothing on the books that can possibly help these people out," Martin said.

News Release
December 4, 2001

Martin moves to protect franchise owners
Tony Martin, MPP

Dec.4, 2001

QUEEN'S PARK – Thirty northern Ontario entrepreneurs could lose everything because of bad franchise deals with corporate owners, MPP Tony Martin revealed today.

On Wednesday, Country Style Donuts will wrest control from owners who bought franchises and built stores in communities across the North, the Sault Ste. Marie MPP said.

"Country Style Donuts has declared open season on its Northern franchise owners — and there's nothing on the books that can possibly help these people out," Martin said.

Martin has proposed a private member's bill that would protect franchisees from unscrupulous corporate owners who want to make a quick buck on the back of investors.

With the enactment of Martin’s bill to amend the current law, The Arthur Wishart (Franchise Disclosure) Act, a franchisor could no longer refuse renewal of a franchise agreement without six months written notice, fair compensation and the right of the franchisee to pursue a similar business in the same location. This bill would also set out a fair process for mediation if the two parties cannot come to their own mutual agreement.

“We’re trying to level the playing field and put some basic protections in place for current and would-be franchisees. Then we can avoid some of the 5,000 court cases that take place every year in this province between franchisees and parent companies.”

“The rest of the business world has to live up to commercial standards. It is time the franchise industry is brought up to par,” stated Martin.

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Media Inquiries: Sarah Jordison (416) 325-4014/ Jeff Ferrier (416) 325-9555
www.ontariondp.on.ca


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Risks: Tony Martin, Private Members’ Bill, Arthur Wishart Act (Franchise Disclosure), 2000, Canada, Refusal to renew contract, Expropriation without compensation, Non-compete restrictions defeated, Mediation, 5,000 new lawsuits per year in Ontario, Canada, Politician's news release, Were in default for some time: why terminate now?, Canada, 20011204 Martin PR

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