The Ontario government has responded with surprising speed to the Final Report from the Changing Workplaces Review (the Final Report) by introducing Bill 148, the Fair Workplaces, Better Jobs Act, 2017 on June 1, only eight days after the release of the Final Report on May 23, 2017. Bill 148 is intended to implement certain recommendations made in the Final Report. In a positive development for franchisors and franchisees, Bill 148 does not include measures to adopt the more drastic recommendations in the Final Report that were specifically directed at franchise systems.
Foreign-based franchisors may wonder how difficult it would be to expand their businesses into the United States. One possible solution is for the foreign-based franchisor to initially sell its U.S. franchises to citizens of its home country, or citizens of other countries where it may already have an established presence. Fortunately, in most cases, a foreign franchisee will be eligible to own and operate a franchised business under the E-2 treaty investor category.