Provinces In Canada With Franchise Legislation

Currently in Canada, British Columbia, Alberta, Manitoba, New Brunswick, Ontario and Prince Edward Island have legislation regulating the relationship between franchisors and prospective franchisees/ franchisees. Within Canada, the provincial franchise legislation has the following common elements:

1. Disclosure  - obliging franchisors to disclose specified information/documents to prospective franchisees prior to prospective franchisees contractually committing to and/or investing money in the franchise;
2. Duty of Good Faith - imposing a duty of good faith and fair dealing on the franchisee and the franchisor in the performance and enforcement of the franchise agreement;
3. Right to Associate  - providing franchisees with the right to associate and organize with other franchisees;