Franchise Legislation Has Arrived In British Columbia

British Columbia's new Franchises Act (the "Franchises Act") and accompanying Regulations will come into force on February 1, 2017, giving franchisors only four months to ensure their disclosure and business practices comply with the new requirements.

In our November 2015 bulletin, we discussed how British Columbia would soon be joining Alberta, Manitoba, Ontario, New Brunswick and Prince Edward Island by adopting franchise-specific legislation aimed at ensuring that franchisors and franchisees deal fairly with one another in a more transparent regulatory environment.

Similar to the franchise-specific legislation in other provinces, the Franchises Act:

• requires franchisors to provide prospective franchisees with a disclosure document containing detailed information about the franchisor and franchise system at least 14 days before a franchise agreement is signed or any consideration is paid to the franchisor;