Corporate & CommercialLawyer referralFranchising

Franchise resale or transfer for a franchisee

Buying or selling an existing franchised business, including the franchisor's consent and transfer terms.

A franchisor usually must give you its disclosure document at least 14 days before you sign or pay anything, so have the lawyer review it within that time. Ontario Done by an Ontario lawyer, by referral

What is included

  • Reviews the franchise agreement and the franchisor's disclosure document
  • Explains your rights under Ontario's Arthur Wishart Act (Franchise Disclosure), 2000
  • Negotiates changes with the franchisor where possible
  • Prepares disclosure documents and franchise agreements for franchisors
  • Advises on transfers, renewals, terminations and exemptions

What is not included

  • Government filing, search and registration fees and other disbursements
  • Tax, accounting or valuation advice, unless the lawyer agrees to provide it
  • Disputes or litigation that arise later
  • Work by NEO Legal Services: NEO is a paralegal firm and only makes the referral

Who this service is for

  • People buying a franchise
  • Franchisees selling, renewing or ending a franchise
  • Businesses planning to franchise

Information to have ready

  1. 1The franchise disclosure document and all attachments
  2. 2The franchise agreement, lease and any related agreements
  3. 3Your business plan and financing details
  4. 4Any correspondence with the franchisor

How a referral works

  1. 1Tell us in a few words what the matter is about, and who else is involved, so we can check for a conflict of interest.
  2. 2We recommend an Ontario lawyer for your matter, and at least one other you could choose instead.
  3. 3The lawyer runs their own conflict check, confirms the scope and quotes the fee, normally in a written retainer agreement.
  4. 4You pay the lawyer's fee to the lawyer. Any referral fee comes out of it, is disclosed to you in writing, and never increases what you pay.

NEO Legal Services Professional Corporation is a licensed paralegal firm, not a law firm. Every step of a referral, and your rights

Frequently asked questions

What does the lawyer charge?

A typical Ontario fee for this service is $3,500–$9,000, plus HST. The lawyer quotes the actual fee before any work starts. You pay the lawyer directly; the referral itself costs you nothing.

What if the franchisor did not give me proper disclosure?

Ontario's franchise law may give a franchisee the right to cancel the agreement within set time limits when disclosure was late or missing. Speak to the lawyer promptly, because those time limits are short.

Can I negotiate a franchise agreement?

Sometimes. Many franchisors use standard terms, but some changes may be possible, and the lawyer can tell you which terms matter most.

General information only, not legal advice. NEO Legal Services Professional Corporation is a licensed paralegal firm regulated by the Law Society of Ontario.

Important limitations

  • No particular commercial result can be guaranteed
  • Government approvals and third-party consents are outside the lawyer's control
  • The work is limited to the scope the lawyer confirms in writing
Law Society of Ontario — Barreau de l'Ontario
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