Vendor Financing in the Purchase of a Business
In carrying out a purchase and sale of a business, it is not uncommon for a potential purchaser to have difficulties in obtaining financing through traditional financial institutions such as banks or credit unions. As an alternative, the vendor may be agreeable to providing some or all of the financing to the purchaser. Vendor financing […]
Confirming Your Intended “Use” is Allowed for Your Lease
Finding the right location for your business can be difficult. Once you find the right space, the focus often shifts to negotiating certain terms with the landlord, such as the amount of rent and the length of the lease. One important item that is often glanced over is whether the space can be utilized for […]
What Happens to Your Business if You are ‘Removed’?
When we, as entrepreneurs, start a business, our lives are filled with optimism, and it is often that optimism that drives the success of our business venture. Therefore, it may not occur to the optimistic business owner to think about what happens if, through a health crisis, accident, or other event which results in the […]
Can You Be in a Franchise Relationship Without Knowing It?
The Arthur Wishart Act imposes extensive disclosure obligations on franchisors in order to allow prospective franchisees to make an informed decision as to whether to purchase the franchise. Where a franchisor fails to comply with these disclosure obligations, a franchisee may be entitled to rescind the franchise agreement and make a claim arising out of […]
Personal Restrictions When Becoming A Franchisee
Most people looking for a franchise understand that there will be restrictions imposed by a franchisor on how the business is operated. This can range from a retail store having to purchase products from certain suppliers to a restaurant needing to prepare its burgers in a very specific way. However, some people are surprised to […]
The Importance of Partnership Agreements
Are you forming a business partnership? It is important to formally set out the details of the terms of the business relationship in writing to avoid any potential conflict between the partners. Should all types of partnerships (e.g. GPs, LPs, LLPs, etc.) have a partnership agreement? The answer in one word: absolutely. Failure to have […]
Importance of the Due Diligence Process in Corporate Transactions
What is Due Diligence? Due diligence is a term used to refer to a process of conducting investigations, searches and inquiries in connection with commercial transactions. In this blog, the term due diligence will be referred to in connection with the acquisition of a target corporation. The purpose of the due diligence process is to […]
Why Your Asset Purchase Agreement Should Be Well-Drafted
I am often reminded of the importance of having a well-drafted asset purchase agreement. A few years ago, the decision of the Ontario Superior Court of Justice in Jonathan’s – Aluminum & Steel Supply Inc. v. Retail Alloy Metal & Plastic Plus Ltd. (Oct. 20, 2015), 259 A.C.W.S. (3d) 471, highlighted why it is so […]
Wait, My Landlord Can Tell Me To Move?
Negotiating a commercial lease is a very involved process. There are numerous items of concern, and most people fixate on the term of the lease, the amount of rent, and the right to renew. While these terms are important, there often other provisions in a lease that can have very significant consequences. One provision that […]
