Contractual Relationship

A foreign company can enter contractual relationships to supply goods or services to the Canadian market, without setting up a business in Canada. This can be achieved through the use of agents or distributors.

A company can therefore conduct business with Canada without becoming a permanent resident, which may be beneficial for income tax purposes. Other contractual relationships include franchising and licensing.

Agents and Distributors

• Trade

Franchising

A franchise is formed when a business that offers products or services (the franchisor) enters a contractual relationship with another business (the franchisee). This contract will allow the franchisee to operate its business with the franchisor's trademark and trade name in a specified location. Alberta Government Services administers the Franchises Act and Regulations.

Foreign businesses that want to open franchises should also ensure their trade-marks are protected, and competition laws are adhered to.

Alberta Government Services

• Franchises Act

• Franchises Act Exemption Regulation

• Franchises Regulation

• Tipsheets

  See the following tipsheet: Franchises in Alberta.

Canada Business

• Online Small Business Workshop
  • Buy a Franchise

  • Franchise Your Business

The Business Link

• Buying a Franchise in Alberta
• Checklists for Franchisees
• Checklist to Evaluate a Potential Franchise
• Franchising Your Business
• Tips on Buying a Franchise

Licensing

Licensing is a contractual relationship whereby the licensor grants permission to the licensee to use a copyright, industrial design, patent, trade-mark, trade-name or know how.

Licenses are governed by contractual obligations, although federal intellectual property regulation should be reviewed.

• Intellectual Property Regulation

Date Updated: Jan 04, 2008
RDP-1008