In June, a Quebec court delivered an unprecedented victory to
franchisees of the Dunkin' Donuts brand. The court said that
the Dunkin' Donuts franchisor had not done enough to support
the brand in Quebec, particularly in light of the growing "Tim
Hortons phenomenon" in that province - leading to financial
harm to its franchisees. The judge awarded damages of a cool $16.4
million dollars against the franchisor.
The facts of the court case were specific and complex.
Interested readers will find an enlightening explanation of the key
issues in an article by Ned Levitt and Bruce Schaeffer in the
September 2012 issue of CCH Business Franchise Guide.
Whatever the future impact of that case on franchise law, it put a
spotlight on the expectations and needs of franchisees in banking
their career's future on a brand.
CorbinPartners set out to survey franchisees of brandname pizza
companies doing business in the GTA and surrounding areas to learn
about their perceptions of the support they receive from their
franchisor, and their level of satisfaction with the relationship.
Telephone surveys were carried out. Particular cooperation was
received from franchisees of Domino's Pizza and
Gino's Pizza. Here are a few highlights of what
While a slight majority (53%) of all franchisees surveyed
claimed to be satisfied overall with the level of support they
received, more than a third (37%) directly expressed
dissatisfaction. Domino's franchisees showed the highest level
of satisfaction (80%). Another question seemed to explain the
difference. When asked whether they viewed their association with
their franchisor "more as a client/owner relationship or
as a business partner relationship?" the Domino's
franchisees chose "business partner relationship" far
more frequently than others.
Across all franchisees interviewed, the most frequently
expressed wishes for additional support were in the areas of
promotional support for the brand, and more action-oriented
information about customers. One franchisee said his company should
seek out "better understanding of the market, better
market research thus translating into more competitive marketing,
more cutting edge marketing."
Also frequently mentioned was a wish for better communication
and a better understanding of the needs of individual franchise
locations. "They've got to put themselves in our boots
and see what our problems are as franchisees." ...
"Interact with the franchisees more often, have meetings with
franchisees and see things from our point of view as
A survey of pizza franchisees is the first step in a broader
analysis of the franchising marketplace, to help brand franchisors
understand what it takes to attract and maintain the best
entrepreneurs for their front lines. As Dunkin' Donuts
discovered too late, understanding and addressing any sources of
dissatisfaction among franchisees can help to avoid costly and
embarrassing showdowns in the future. It all goes back to enhancing
and protecting the value of the brand. And as successful
franchisors already know, that's just plain good for
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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