Sell your retail or consumer business

No. The Bulk Sales Act was repealed on March 22, 2017. A buyer now relies on searches and on the representations and indemnities in the purchase agreement.

Ontario law gives most gift cards no expiry date, and a card issued with one is treated as having none. Outstanding balances are therefore a continuing liability, which the purchase agreement allocates between seller and buyer.

The Arthur Wishart Act does not itself require approval; the franchise agreement usually does. A franchisee’s own resale is exempt from the disclosure obligation, and a franchisor’s right to approve on reasonable grounds, or a set transfer fee, does not remove that exemption.

Owner operators acquiring an established business, multi-unit franchise groups adding locations, brands acquiring stores, channels or customers, and private equity funds investing in consumer brands. Sales trends by location and the terms of the lease are what each of them reviews first.

In Ontario, prepaid fitness agreements over $50 are limited to terms of one year, and monthly memberships cancellable on one month’s notice fall outside that limit. Unexpired prepaid memberships are a liability allocated in the purchase agreement.

In Ontario, a person who intends to operate a personal service setting, such as a hair, nail or aesthetics salon, gives the local health unit written notice at least 14 days before opening.

In Ontario, employees the buyer keeps are treated as continuously employed, so their prior service carries over, provided they are rehired within 13 weeks. The seller remains responsible for any employee whose employment ends before closing. What happens to your employees