Will A Franchisor Provide Me With Earnings Projections?

Throughout the evolution of franchise disclosure legislation and case law in Canada, the disclosure of financial performance representations and earnings projections to franchisees has been an ever-present topic. In considering franchise opportunities, franchisees invariably want to know – "how much will I make?" This invites the franchisor to discuss possible future earnings, and present financial information. However, if there is a break­down in the franchisor-franchisee relationship, franchisees typically point to those same earnings projections and change the question to "why didn't I make that much?" Earnings claims are often the first place where a disgruntled franchisee will look to allege there was some misrepresentations or improper disclosure by the franchisor.