The Alberta government has recently decided to extend its Mature Franchisor Exemption under the Franchises Act until its next review in 2021. Under the Franchises Act Exemption Regulation, large franchisors meeting certain financial thresholds and holding a high level of operational experience are exempt from including financial statements as part of their Franchise Disclosure Document to prospective franchisees. In extending this exemption, the Alberta government has kept its legislation consistent with other provincial franchise legislation. Going forward, this move should help Alberta to remain attractive to franchise system investors.… Continue Reading
Franchisors should take note of potential novel allegations being brought against them since the Quebec Court of Appeal’s ruling in Dunkin’ Brands Canada Ltd. v. Bertico Inc., 2015 QCCA 624 (“Dunkin”).
Dunkin reiterated the law’s willingness to read certain obligations into franchise agreements based on the duty of good faith and obligations which flow from the general nature of franchise agreements. Franchisors and franchisees alike have been left to speculate where the limits of their respective obligations and rights lie in the face of a legal landscape in flux.
Since Dunkin, two actions of note … Continue Reading
Further to our update in April Ontario has approved the amended regulations to the Arthur Wishart Act (Franchise Disclosure), 2000 to permit electronic delivery of franchise disclosure documents (“FDD’s”). Regulation 581/00 comes into effect July 1, 2016.
Effective July 1, 2016, franchisors will now be able to deliver FDD’s electronically or by courier, in addition to the previously approved methods of in person or registered mail delivery. The complete changes may be viewed here.
With these amendments, Ontario franchise legislation has received a mini-modernization-makeover.
The new legislation provides that electronically delivered FDD’s must meet the following conditions:
… Continue Reading