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ARTICLE · 11 JANUARY 2016

Bill 38 – 2015: Franchises Act

Alexander Holburn Beaudin + Lang LLP
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On Tuesday, October 20th, BC Bill 38, Franchises Act (the "Act"), was read a third time and passed.

CanadaCorporate/Commercial Law

On Tuesday, October 20th, BC Bill 38, Franchises Act (the "Act"), was read a third time and passed. On Tuesday, November 17th, Bill 38 was given Royal Assent. This means that British Columbia will become the sixth province in Canada to have franchise legislation.

What this means for franchising in BC

The most important implication for franchisors with operations in British Columbia will be the franchise disclosure requirements stipulated under Section 5 of the Act. Much like the legislation in Ontario and Alberta, the Act requires that a franchisor provide a prospective franchisee with a disclosure document at least 14 days prior to the earlier of:

(a) the signing, by the prospective franchisee, of the franchise agreement or any other agreement relating to the franchise; and

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