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Adhere to Business Franchise Law when entering Canada!

There are several ways to enter Canada Market. Some franchisers have the option to choose to enter the Canadian market by either incorporating in Canada or taking franchise directly from their non-Canadian head office. However   most find it easier to contract with Business franchising attorneys or Franchise Law Firm Canadato expand their franchise throughout Canada. This route avoids a variety of problems and issues that may arise  such as employment, tax planning, laws,  corporate structuring and filings, but it still has to adhere  to a number of important Business Franchise Law and regulations such as:

Trade-marks

The very first thing a prospective foreign franchiser should do is to register the firm’s trade-marks in Canada. Registered trade-marks give the franchiser the exclusive rights to use trademarked product or service throughout Canada and are valid forever, on payment of a nominal renewal fee which  is paid every 15 years. Franchise Law Firm helps you to go through registration procedure.

Furthermore the entitlement to trade-mark registration is based upon first use in Canada, and would

not be extended to signs, images or any other marks  that are deemed to be similar  with existing marks. Thus Franchise Agreement Lawyers carry out an in depth  search of federal trade-marks as well as federal and provincial business name registers is always advisable. It  not just increases the probability  of successful registration, but also to uncover the parties using a conflicting mark under junior rights.

Tax

Business Franchise Law Firm Canada must be aware of What is required that in case of tax is that it has to be withheld and also remitted on behalf of non Canadian payee by a Canadian payer. This actually means that tax payment coming from the Canadian main franchisee or the franchisee provider to foreign franchisers are naturally reduced  by the extent of amount of withholding tax. Currently, the withholding tax rate in Canada is 25 per cent which is available along with substantial reductions under a treaty with Canada to some countries. For U.S. the tax is as less as  10 per cent.

Franchisee Disclosure Legislation

While actually there is no federal law governing franchise disclosure in Canada ,

many parts of country have enacted robust regulations having direct implications for foreign franchisers. Franchise disclosure legislation in Ontario as well as Prince Edward Island mandates foreign franchisers to disclose certain information to a main  franchisee for the whole Canada.

Business Franchise Law being very stringent in Canada, every foreign franchiser must take into account the above listed requirements. However these don’t cover  the whole Business Franchise Law and hence one must resort to Business Franchise Law Firm Canada for the same.

For more information on how to adhere to business franchise laws and regulations when entering Canada, please contact Opara Law PC by email at Info@TorontoBarristers.com or by phone at 416-840-5572.

Victor Opara, Victor Nnamdi Opara

 

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