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Canadian Franchise Attorney Calls Franchise Ownership "Renting A Business"


(This post may contain affiliate links. Please read my disclosure policy).

Canada has a thriving franchise industry, and a Canadian franchise attorney Tony Wilson points out 3 advantages of franchise ownership;

  • Training in the business model. "They're training you to use their
    system; training is a huge component in franchising," Wilson says.
  • Access to a trademark and brand advertising. "That's what franchisees should expect — to get the benefit of the brand."
  • Joint purchasing power. "If you're in a buying group with 16 other
    restaurants, you're going to get your food cheaper than if you're one
    restaurant buying your product by yourself," Wilson explains.

Wilson recently wrote, "Buying a Franchise in Canada: Understanding And Negotiating Your Franchise Agreement." Some of the franchise laws in the book only apply to Canadian franchisors.

Wilson also said that "You never own the business, really. You're just renting it from somebody else." Article

If you have been reading my articles for awhile, you know that I am not a card-carrying member of the International Franchise Association, and that I show both the positive and the negative sides of franchising.

I must say that I totally disagree with Mr. Wilson's statement. You are not "renting a business," when you buy a franchise. You are buying a system, and if you are a good fit for that particular franchise concept, you go in with enough working capital, and you follow the plan, (Which you found out was a good one, because you did superb research) then you have a reasonably good chance of small business ownership success.

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Renting a business? Great statement to increase readership of that article, but not true, Tony…

What do you think? Are you "renting a business" when you purchase a franchise?

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joel libava

I'm The Franchise King®, Joel Libava. I help prospective franchise owners avoid bank account emptying mistakes.
For 23 years, I’ve been showing people how to make smart, informed decisions on franchises to buy, and I can help you, too!
P.S. I'm not a franchise consultant/broker.

Straightforward Advice
Joel, thank you for taking the time to speak with me yesterday. It was refreshing to finally speak with someone in franchising who dishes out straightforward, candid advice. You provided me with some insightful ideas that I'm giving a good deal of thought and consideration to. I look forward to speaking with you on our next consultation call."
- John Timmins, Columbia, South Carolina
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