When Must A Franchise Disclosure Document Be Delivered In Canada?

One of the easiest mistakes for a foreign franchisor to make when entering Canada is to focus almost exclusively on what must be disclosed and pay comparatively little attention to when disclosure must occur.

That approach is understandable. After all, preparing a franchise disclosure document requires significant effort. It is natural to concentrate on its contents. Yet Canadian franchise legislation is concerned not only with the substance of disclosure but also with the timing of disclosure. A perfectly prepared disclosure document can still expose a franchisor to significant liability if it is delivered at the wrong time.

Timing is not a procedural technicality. It is a fundamental component of Canada’s franchise disclosure regime.