Jean-Philippe Turgeon a partner and the head of Lavery’s Franchising and distribution group, and Stéphanie Destrempes, a lawyer from the same group, have written an article entitled “The Franchisor’s Duty to Police the Franchise System” in the Franchise Law Journal published by the American Bar Association (ABA) [Volume 36-1 (Summer 2016)] in collaboration with Craig Tractenberg, partner at Nixon Peabody LLP (in New York). This article provides a comparison analysis (Canada and U.S.A.) of the franchisor’s implied duty, in correlation with the long term nature of the franchise agreement to protect its brand and maintain sustainable franchise system operations. The article also discusses the application of the business judgment rule.
