Checklist of Franchisor Requirements

Write a Franchise Agreement for a franchise business in Canada using this comprehensive template.

• This is a standard form of franchise agreement which is completely customizable and can be used across Canada in all provinces except for Quebec.
• The document contains clauses covering the initial term and renewal terms, initial franchise fee, and continuing fees to be paid by the franchisee.
• The franchisor is responsible for providing the franchisee with training, ongoing support and access to its purchasing programs.
• The franchisee is responsible for being open for business and operating the franchise in accordance with the franchisor's operations manual and system standards.
• The franchisee must comply with confidentiality and non-competition provisions both during and after the term of the agreement.
• The franchisee is obligated to participate in the franchisor's advertising and marketing programs.
• The template contains provisions for arbitration procedures.
• Available in MS Word format.
• Intended to be used only within Canada.

Canadian franchise laws require franchisors to provide potential franchisees with this Franchise Disclosure Document.

The Disclosure Document discloses all relevant information about the franchisor and the franchise business as required by franchise laws and regulations for the Provinces of Ontario, Alberta, British Columbia, Manitoba, New Brunswick, and Prince Edward Island, including:

• the franchisor's corporate structure and history,
• the business experience of the principals of the franchisor,
• any current or potential litigation involving the franchisor,
• initial franchise fees and other fees to be paid by a franchisee,
• financing, working capital, and estimates of annual operating costs,
• restrictions on sources of products and services, and restrictions on what the franchisee may sell,
• assistance and training programs offered by the franchisor,
• government licenses, registrations and authorizations,
• provisions for renewal, transfer and termination of the franchise,
• financial statements and information,
• forms and addenda to meet province-specific requirements.

The Canada Franchise Disclosure Document is available in MS Word format.

Screen your potential franchisees by having them complete this Confidential Evaluation and Application Form, for Canadian franchises.

• Evaluate the skills and expertise of the applicant franchisee, based on employment background and management history.
• Verify the applicant's financial resources by performing credit checks and other searches, based on the financial information provided.
• Assess the overall business capabilities of the applicant.
• Available in MS Word format.
• Intended to be used only in Canada.

Canadian franchisors, create a Restrictive Covenant and Confidentiality Undertaking for your franchisees with this template.

• Under this Undertaking, new franchisees signing up to your program agree to be bound by the restrictive covenant and confidentiality provisions of the Area Development Agreement in effect in their territory.
• This downloadable form is available in MS Word format and is easy to customize to fit your circumstances.
• Intended for use only in Canada.

Grant your franchisees a license to use your trade name with this Franchise License Grant and Name Restriction.

• The license is granted subject to certain restrictions.
• When completed, the License should be attached as an addendum to the original Franchise Agreement.
• This is a generic legal form that is not specific to any country.