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 by:

  • Using agents or distributors
  • Licensing
  • Franchising

Agents and distributors

Agents or distributors operating in Alberta should be familiar with factors involved in Importing and Exporting Goods.

Licensing

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

Licences are governed by contractual obligations, although federal intellectual property regulations should be reviewed.

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 allows the franchisee to operate its business under the franchisor's trademark and trade name in a specified location.

Note: Foreign businesses that want to open franchises should protect their trademarks and comply with competition laws.

Service Alberta administers the Franchises Act and associated regulations.

Canada Business Services (Government of Canada) has information about franchising a business.

The Business Link provides resources about franchising a business in Alberta.

Date Updated:
RDP-1667