LAW 525 Lecture Notes - Lecture 8: Arthur Wishart, Collective Buying Power, Franchising

• School: Ryerson University
• Department: Law and Business
• Course: LAW 525
• Professor: Kernaghan Webb

Document Summary

Franchises and the law: ontario arthur wishart act (franchise disclosure), 2000, government information sheet, franchising law in canada excerpt, points case, 2 for 1 subs case. The franchising phenomenon: has become an increasingly popular retail business form. 48% of all canadian retail and service dollars spent by consumers are sent at franchises. More tha(cid:374) (cid:1005)(cid:1005)(cid:1004)(cid:1004) fra(cid:374)(cid:272)hise s(cid:455)ste(cid:373)s i(cid:374) ca(cid:374)ada (per: (cid:862)fra(cid:374)(cid:272)hisi(cid:374)g i(cid:374) ca(cid:374)ada(cid:863) -- fic) Offers fra(cid:374)(cid:272)hisee a (cid:862)tur(cid:374)ke(cid:455)(cid:863) approa(cid:272)h to ru(cid:374)(cid:374)i(cid:374)g a (cid:271)usi(cid:374)ess (benefit from pre- determined approach and brand name) One statistic: franchisee has 80% chance of success, while non-franchisee has. 80% chance of failure within five years (fic) Franchising benefits in a breach of the agreement. Rapid growth for franchisor with relatively low capital. Operational duties carried out by franchisees with relatively little franchisor/head office supervision. Franchisees may be more motivated than conventional managerial situation because franchisees are owners. For new franchise, enhanced ability to compete against established companies.