CFA Membership Membership, January 2, 2002

This company is listed as a member of the Canadian Franchise Association. As such they claim to abide by their published Code of Ethics.

Canadian Franchise Association
January 2, 2002

Membership List

Canadian Franchise Association

This company is listed as a member of the Canadian Franchise Association. As such they claim to abide by their published Code of Ethics.

The historical record of their actual enforcement of their Code can be found through the Canadian Alliance of Franchise Operators.
705 737-4635 tel

Code of Ethics

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.

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.

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.

A franchisor shall provide reasonable guidance, training 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.

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.

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.

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

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

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.

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.

January 2, 2002

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