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Canada's New Proposed Cannabis Legislation: Challenges to Franchisors

Idan Erez | April 19, 2017

I) Introduction to the New Proposed Cannabis Legislation

The federal government has recently introduced proposed legislation to legalize the recreational use of cannabis (marijuana). Once this legislation is passed, it will establish a framework for the production, possession, distribution, and selling of cannabis for recreational use.

Non-Competition and Non-Solicitation Clauses in Franchise Agreements

Idan Erez | April 4, 2017

I) Non-Competition and Non-Solicitation Clauses: What Are They?

Franchisors often include within their franchise agreements provisions that seek to restrict the ability of the franchisee and the franchisee’s principals to (i) compete with the franchisor and (ii) solicit the franchisor’s employees to compete. Provisions that seek to do the former are known as “non-competition clauses” or “non-competition covenants”; provisions that seek to do the latter are known as “non-solicitation clauses” or “non-solicitation covenants”.