39
CANADIANLAWYERMAG.COM/INHOUSE NOVEMBER 2016
I n d u s t r y S p o t l i g h t
IT'S A RARE CANADIAN main street
without at least one U.S. store, restaurant or
coffee chain, a testament to the lure of fran-
chise operations in a country that Ameri-
cans often view as "international light."
And the U.S.-to-Canada franchise race
remains on track, despite a still murky le-
gal environment in many provinces, as well
as possible changes to Ontario's labour law
and a high-profi le Quebec ruling that may
increase the costs to franchisors in the
French-speaking province. The concerns
highlight the need
for comprehensive
legal advice for
both sides of the
operation: the fran-
chisors and the franchisees. But
they have not stopped the steady growth in
franchising.
"I have clients from all over the world
who see Canada as a wonderful, politically,
fi nancially, culturally stable jurisdiction to
develop their markets," says Stéphane Teas-
dale, co-head of the corporate and commer-
cial law group at Dentons Canada LLP in
Montreal and chairman of the international
law fi rm's global franchise and distribution
law group. "I had calls this week with three
international clients looking at Canada
to develop their stores and develop their
e-commerce platform. They see Canada as
being a relatively easy and not so expensive
place to do business, with 30-million-plus
people to buy their goods
and services."
Larry Weinberg,
who specializes in
franchise law at Cassels
Brock & Blackwell LLP
and who chairs the Le-
gal & Legislative Affairs
Committee at the Canadi-
an Franchise Association,
sees Canada as the No. 1 destination for
U.S. brands. "We are not really full-blown
international to them," he says. "We're a
simpler place to go."
Canada's advantages for U.S. fi rms
Canada still scores as
franchise destination
A patchwork collection of provincial laws isn't deterring
big U.S. retailers from securing storefronts.
BY JANET GUTTSMAN
