Franchise disclosure legislation helps ensure transparency and fairness between franchisors and prospective franchisees. These laws require franchisors to provide detailed information about their franchise system before a franchise agreement is signed or any payment is made.
In Canada, franchise disclosure is regulated at the provincial level rather than through a single national law. Several provinces have enacted legislation that establishes disclosure requirements, duties of fair dealing, and rights of association for franchisees. These laws are designed to help prospective franchisees make informed investment decisions and create a fair and transparent franchise marketplace.
While many elements of franchise disclosure legislation are similar across provinces, there are important differences between jurisdictions.
Provinces with Franchise Disclosure Legislation
The following provinces currently regulate franchising through franchise disclosure legislation.
Ontario
Ontario introduced franchise disclosure legislation through the Arthur Wishart Act (Franchise Disclosure), 2000, which remains one of the most influential franchise statutes in Canada.
Legislation:
Arthur Wishart Act (Franchise Disclosure), 2000
Alberta
Alberta’s Franchises Act establishes disclosure requirements and sets out rights and obligations for both franchisors and franchisees.
Legislation:
Alberta Franchises Act
British Columbia
British Columbia introduced franchise legislation in 2015 through the Franchises Act, aligning its framework with other provinces that regulate franchising.
Legislation:
British Columbia Franchises Act
Manitoba
Manitoba’s Franchises Act establishes disclosure obligations and protections for franchisees operating within the province.
Legislation:
The Franchises Act
New Brunswick
New Brunswick regulates franchising through its Franchises Act, which includes disclosure requirements and dispute resolution provisions.
Legislation:
New Brunswick Franchises Act
Prince Edward Island
Prince Edward Island’s Franchises Act provides disclosure protections for prospective franchisees and establishes rights of association.
Legislation:
Prince Edward Island Franchises Act
Upcoming Legislation
Saskatchewan
Saskatchewan passed The Franchise Disclosure Act in 2024. The legislation will come into force on June 30, 2026, making Saskatchewan the seventh Canadian province with franchise disclosure legislation.
The new law will introduce disclosure requirements for franchisors and align Saskatchewan with other regulated provinces across Canada.
Legislation:
The Franchise Disclosure Act (Saskatchewan)
Franchisors operating or expanding in Canada should seek advice from qualified legal counsel to ensure their franchise disclosure documents and agreements comply with the legislation in each province where they offer or sell franchises.