Foreign Franchisors Expanding Into Canada

Canada continues to be the most important market for US franchisors operating outside of the US. The regulatory regime in Canada aimed specifically at franchising is much less developed and, accordingly, much less restrictive than in the US. Most franchised businesses involve retail restaurants, services, or sale of consumer goods, all of which usually rely heavily on their locations and the real estate related to those locations.

Only Alberta and Ontario have enacted specific franchise legislation. Neither province imposes a registration requirement (a former statute in Alberta requiring franchisor registration has been repealed). Both the Alberta and Ontario statutes are intended to require full disclosure by franchisors to franchisees so that the franchisee can make an informed decision when entering the franchise relationship.