The assessment of whether to purchase a franchised business is a
significant one, and prospective franchisees should be making
informed investment decisions before signing any franchise
agreement.
Franchise law in various Canadian provinces recognizes the
importance of franchisees receiving as much information as possible
before binding themselves to a franchisor who holds considerably
more power in the business relationship. As a result, the provinces
of Ontario, Alberta, Prince Edward Island, New Brunswick and (later
this year) Manitoba, have franchise legislation in place which
protects the need for franchisees to make educated investment
choices.
This is the purpose of the franchise disclosure document
– a compendium of information about the franchise system
which franchisors are required to provide to franchisees operating
businesses in those particular provinces. The legal requirement to
deliver a disclosure document is not taken lightly, and a
franchisee's
