All you need to know about the national market statement in few seconds

Linkea
Linkea
Avocats, Conseils en réseaux
08/08/2023

The Franchise Disclosure Document to be provided to prospective franchisees shall include a national and a local market statement.

These “statements” shall present the goods/services market related to the franchise’s activity.

These are notstudies“: it’s up to the prospective franchisee to carry out his own market study.

The national market statements shall include a nationwide presentation of the relevant market, the target clientele, the population, the various actors and competitors.

They shall also include a section analyzing the market’s “development perspectives”.

The local market statements are carried out in the geographic area where the candidate wishes to operate its business: city/neighborhood.

They must include a list of competitors, the population and traffic flows in the area.

To provide these statements, the franchisor may:

– use existing market data (e.g. XERFI studies) and summarize them, citing and retaining the sources used ; or

–  use the services of a service provider.

Linkea
Linkea
Avocats, Conseils en réseaux
08/08/2023
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The Doubin Law

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