Trademark disclosure (franchise)

A buyer meets this item in the disclosure document, where the franchisor sets out its rights to the brand. One limb of the franchise definition in s. 1(1) of Ontario’s Arthur Wishart Act refers to goods or services substantially associated with a trade-mark, trade name, logo or other commercial symbol owned by or licensed to the franchisor or its associate. See what a franchisor must disclose before you sign.

What Ontario requires

Section 6 of O. Reg. 581/00 requires a description of the rights the franchisor or its associate has to the trade-mark, trade name, logo or advertising or other commercial symbol associated with the franchise. This entry covers Ontario’s requirement only; check the rules where you are.

What to check or ask

• Whether the marks are on the federal register. The Canadian Intellectual Property Office’s guide says registration is not required, so a mark missing from its Canadian Trademarks Database is a question to ask, not a conclusion
• Whether the franchisor owns the marks or holds them under a licence, and who the owner is
• Whether the owner has, under the licence, direct or indirect control of the character or quality of the goods or services, which s. 50(1) of the federal Trademarks Act requires, for the purposes of that Act, before a licensee’s use has the same effect as the owner’s use; see licensed use of a trademark