Timing Of Disclosure

The Arthur Wishart Act (Ontario's franchise legislation) requires a disclosure document be provided to all prospective franchisees at least 14 days in advance of the earliest of:

1. the prospective franchisee signing any agreement relating to the franchise; and
2. any payment of consideration on behalf of the prospective franchisee to the franchisor or franchisor's associate relating to the franchise.

No Obligation Refundable Deposit Exception - An exception exists that permits a prospective franchisee to pay consideration to a franchisor if, the payment:

1. is a maximum of 20% of the initial franchise fee, to a maximum of $100,000.00;
2. is fully refundable, without deductions; and
3. in no way requires the prospective franchisee to enter into a franchise agreement.