Article Abstract:
Scott's Food Services Inc. prevailed over Kentucky Fried Chicken (KFC) Canada in their franchise dispute. The Ontario Court of Appeals ruled that;KFC had no right to approve changes in Scott's shareholders. The dispute arose when Scott's parent company, Scott's Hospitality was sold. The buyer wanted to terminate Scott's franchise with KFC. KFC however argued that the agreement was between Scott's and KFC and therefore KFC had the right to pre-approve any changes in its corporate stucture. KFC won in the trial court, but this decision was overturned by the appelate court.
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Article Abstract:
Restaurant franchising in Canada is entering a new era with the enactment of the Arthur Wishart Act. The adoption of legislation regulating the industry will impact the way franchisors do business across the country. With the law, also known as Franchise Disclosure 2000, Ontario will be the second province to adopt franchise legislation, following Alberta in 1995. the Act regulates franchise disclosure rules, provides for a duty of fair dealing and protects the franchisee's right to associate.
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Article Abstract:
Canadian franchisors are benefitting from the strong domestic growth which provides opportunity for both mature and start-up systems to boost their expansion. Mature franchisors are expected to concentrate on developing non-traditional markets, co-branding and twinning options. On the other hand, start-up operators are expected to focus on building units and increasing their market exposure.
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