News & Updates

Issues in Restaurant Franchising

August 07, 2011

As many franchise systems operate in the food sector, there are a myriad of issues for franchisors and franchisees to be aware of in this particular industry. The following are just 3 relevant examples:

Food Safety: There are many different considerations for franchises that must be addressed, ranging from how to deal with recalled foods, food management after a power failure, food irradiation, issues surrounding the deep frying of foods and those related to infectious food?borne diseases. The issue of food allergies is perhaps one of the most significant concerns for restaurant operators today, so it is important for restaurant operators to be aware of what causes allergic reactions and how they may be identified and treated within the restaurant setting. To that end, restaurant operators need to know how to provide accurate ingredient information to customers with food allergies so that adverse reactions to food products may be avoided.

Liquor Licensing: Alcohol is regulated by provincial commissions. Businesses operating bars, restaurants, hotels, clubs and taverns must register and obtain a liquor license if they intend to serve beverage alcohol. These laws provide practical rules for the responsible sale and service of beverage alcohol in that province, such as liquor sales licenses, liquor delivery service, manufacturer’s licenses and representative licenses. There is also an obligation to conduct a “Smart Serve” training program so that employees will know how to prevent alcohol-related problems.

Anti-Smoking: Almost every province has legislation and by-laws which act to prevent smoking in public places, i.e. restaurants and bars. The fees for non-compliance are considerable. There are unique differences between anti-smoking legislation in each province that will need to be considered depending on what type of business you operate and where it is located.

Tags: Franchising