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

Recommended Reading:


comments powered by Disqus
Firehouse Subs


Premium Services

Konnect Business Opportunity

Konnect is an agency with unmatched business acumen that provides public...

Tango Business Opportunity

Tango unites predictive analytics, GIS and store development into a single...

Franchise Consumer Marketing Conference Business Opportunity

Franchise Consumer Marketing Conference
June 19-21, 2018. Intercontinental Hotel, Atlanta (Buckhead), GA. An...

Silvercrest Advertising Business Opportunity

Silvercrest Advertising
Silvercrest Advertising has created a one-stop shop solution for all of...

Scorpion Business Opportunity

Scorpion offers ROI-positive online marketing solutions that can get your...

Franchise Leadership & Development Conference Business Opportunity

Franchise Leadership & Development Conference
Oct. 9-11, 2018 Intercontinental, Atlanta, GA. Over 350 franchise...

ApplePie Capital Business Opportunity

ApplePie Capital
ApplePie Capital provides a fresh new approach to franchise financing that...

Vya Business Opportunity

Engaging franchisees in local marketing takes more than just technology....

Franchise Update Magazine

A targeted, quarterly magazine that takes CEO's, VPs and Sales Executives to the cutting edge of franchise development.

Share This Page

Subscribe to Franchise Update Sales Report

A Franchise Update Media Production
Franchise Update Media
P.O. Box 20547
San Jose, CA 95160
PH. (408) 402-5681
In Loving Memory Of Timothy Gardner (1987-2014)

Copyright © 2001 - 2018.
All Rights Reserved.