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 Canada to 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.
Further more 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.