Canada Franchise Agreement for Educational Centre

Canadian franchise laws require franchisors to provide potential franchisees with this Franchise Disclosure Document.

• The Disclosure Document discloses all relevant information about the franchisor and the franchise business as required by franchise laws and regulations for the Provinces of Ontario, Alberta, British Columbia, Manitoba, New Brunswick, and Prince Edward Island, including:
  • the franchisor's corporate structure and history,
  • the business experience of the principals of the franchisor,
  • any current or potential litigation involving the franchisor,
  • initial franchise fees and other fees to be paid by a franchisee,
  • financing, working capital, and estimates of annual operating costs,
  • restrictions on sources of products and services, and restrictions on what the franchisee may sell,
  • assistance and training programs offered by the franchisor,
  • government licenses, registrations and authorizations,
  • provisions for renewal, transfer and termination of the franchise,
  • financial statements and information,
  • forms and addenda to meet province-specific requirements.
• The form is available in MS Word format.
• Intended for use only in Canada.

Screen your potential franchisees by having them complete this Confidential Evaluation and Application Form, for Canadian franchises.

• Evaluate the skills and expertise of the applicant franchisee, based on employment background and management history.
• Verify the applicant's financial resources by performing credit checks and other searches, based on the financial information provided.
• Assess the overall business capabilities of the applicant.
• Available in MS Word format.
• Intended to be used only in Canada.

Bad things can happen when a franchisee is unable to meet its obligations. Be sure to have all your franchisees sign this Guarantee and Indemnification.

A franchisee may, for any number of reasons, find itself unable to fulfill its obligations under the Franchise Agreement. To protect your business against franchisee default, it is essential to have your franchisees sign a Guarantee and Indemnification Agreement.

Legal Basis and Structure

This document is a Canadian legal form created specifically for franchise relationships. Under the terms of the agreement, a principal of the franchisee company personally guarantees the fulfillment of all obligations and the payment of any amounts owed to the franchisor under the Franchise Agreement.

Indemnification Provisions

The franchisee company agrees to indemnify the franchisor against any losses or claims that arise as a result of the franchisee's default or inability to perform.

Acknowledgment and Covenants

By signing the Guarantee and Indemnification, the principal of the franchisee acknowledges and agrees to be bound personally by the covenants outlined in the Franchise Agreement.

Benefits of Having the Guarantee in Place

Requiring all franchisees to execute this Guarantee and Indemnification provides legal recourse if a franchisee fails to meet its obligations or is unable to continue operating its business.

Access and Governing Law

The Guarantee and Indemnification form is available for immediate download following purchase. The agreement is governed by the laws of Canada.

Sublet all or part of a business premises in Ontario to a subtenant with this Commercial Sublease Agreement.

• The subtenant accepts the premises "as is".
  
• The subtenant agrees to pay rent and a proportionate share of the additional rent to the original tenant, who then pays the landlord.
• The subtenant must remove any leasehold improvements and must repair any damage at the end of the term.
• The subtenant and original tenant will each pay half of any fees associated with the sublease.
• The Sublease requires the consent of the landlord.
• This Commercial Sublease Agreement template is intended for use in the Province of Ontario, Canada.

Are you planning to franchise your business? Find out if your business model meets the minimum requirements to be a franchisor.

This free checklist sets out the considerations you will need to take into account, including:

• the history of the business and experience of its principals,
• profitability of your business model,
• level of documentation, training and support you're able to provide franchisees.

The free Checklist of Franchisor Requirements was compiled by a franchise specialist.