Franchise Law In Ontario
Company Added
Company Removed
Apply to Request List

Franchise Law In Ontario

Ontario is one of three provinces that have legislation to regulate franchises. The act that governs franchises in Ontario is the Arthur Wishart Act (Franchise Disclosure), 2000 (the "Act"). Any franchise business located partly or wholly in Ontario must comply with the Act. Compliance is mandatory even if both the franchisor and franchisee reside outside of Ontario.

In Ontario, every franchisor is required to provide a prospective franchisee with a disclosure document. A disclosure document outlines and includes amongst other things, all material facts, financial statements and copies of all agreements relating to the franchise. Section 7 of the Act provides some limited exemptions from the requirement to deliver a disclosure document. A disclosure document can be delivered personally, by registered mail or by any other method prescribed by regulation made under the Act ("Regulation"). Electronic disclosure is not permitted in Ontario.

A disclosure document must be current and updated at the time of delivery to each prospective franchisee. This requirement places the onus on a franchisor to continuously update its disclosure document. Foreign franchisors must ensure that any existing foreign disclosure document contains all of the requirements prescribed by Regulation. The Act is not clear whether a franchisor can use a foreign disclosure document and include an addendum containing relevant local information or whether the foreign disclosure document must be revamped to comply with the Regulation.

Published: November 10th, 2008

Share this Feature

UBreakiFix
SPONSORED CONTENT
UBreakiFix
SPONSORED CONTENT
UBreakiFix
SPONSORED CONTENT

Recommended Reading:

Comments:

comments powered by Disqus
Batteries Plus
ADVERTISE SPONSORED CONTENT

FRANCHISE TOPICS

Arby's
ADVERTISE SPONSORED CONTENT
Conferences
InterContinental, Atlanta
OCT 19-21ST, 2021

MSA provides domestic and international franchise advisory services to franchisors and companies seeking to establish franchise and licensing systems.
Our franchise management software helps increase unit growth, reduce opening time, track and improve unit performance, automate financial reporting...

Share This Page

Subscribe to Franchise Leadership & Development Report