Franchisee association
A franchisee association is an organization of franchisees within one franchise system, of the kind provincial franchise Acts say a franchisee may form or join. For a buyer, it can be a way to reach the other franchisees the Canadian Franchise Association says to speak with before buying.
A franchise buyer meets this term while checking a system before buying. The Canadian Franchise Association says it is important to speak with other franchisees in the system, along with suppliers, landlords and customers, before you make your final investment decision.
What it is and is not
The Ontario and British Columbia Acts both use the phrase “organization of franchisees”. The Acts protect the right to form or join one, but the passages read for this entry do not say whether a given system has one, who runs it, or what it does. That has to be found out for each brand.
What to ask
- Whether the system has an association, and how to contact it.
- Whether it is run by franchisees or supported by the franchisor.
- What its members say about the issues raised in the guide to the franchise agreement.
The statutory side is covered under the right to associate.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Government of OntarioGovernmentArthur Wishart Act (Franchise Disclosure), 2000, S.O. 2000, c. 3
- 02Government of British ColumbiaGovernmentFranchises Act, S.B.C. 2015, c. 35
- 03Canadian Franchise AssociationIndustryInterested in Buying a Franchise?
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