American Chains Meet New Challenges in Canada


TORONTO — Many American restaurant chains are moving north with the better economy, but there are other problems to beware of in Canada, according to a report from The Globe and Mail.

“[The provincial laws] are creating more of a hurdle or a barrier to entry. And, if they make it too complicated, you’re liable to find that big brands, either from Canada or from the U.S., are going to say, ‘Why bother? I’m not going to go there,’” Larry Weinberg, of Cassels Brock & Blackwell LLP in Toronto, told The Globe. A couple of his clients are Canada-bound, including Famous Dave’s of America Inc. and Qdoba Mexican Grill.

Toronto litigator Jennifer Dolman, of Osler Hoskin & Harcourt LLP, said recent rulings have seen judges favour franchisees in disputes. “A lot of U.S. companies want to come here, because they do the research, and they understand there’s the market and large customer base,” Dolman said. “But they get very nervous about our laws. Very nervous.”

For the complete Globe report on northbound American chains, visit franchises/article2278307/.

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