Franchising in Canada

Canada, has a dual system of federal and provincial laws. However, there is no franchise regulation at the federal level in Canada. Three provinces, namely Alberta, Ontario and Prince Edward Island, have enacted franchise legislation, and New Brunswick’s Act received Royal Assent on June 26, 2007 but is not effective yet.

Provinces with Franchise Regulation

Alberta Franchises Act

Alberta’s statute (the “Alberta Franchises Act”) was adopted in 1995. It requires pre-sale disclosure, but does not provide for regulatory review or regulate any aspect of the franchise relationship. This is in contrast to the law it replaced which, unlike the present statute, required registration and regulatoryreview of franchise agreements.

New Brunswick Franchises Act

The province of New Brunswick introduced the Franchises Act on December 7, 2005.  Bill 32 was introduced on February 23, 2007. It is similar to the previous bill and contemplates presale disclosure, but without registration. It received Royal Assent on  June 26, 2007.

Ontario Franchises Act

In 2000, Ontario adopted its first franchise regulatory scheme, known as the “Arthur Wishart Act. The Ontario statute became effective on January 31, 2001. These provisions apply to new franchise agreements entered into after that date or a renewal or extension of existing franchise arrangements.

Prince Edward Island Franchises Act

The Province of Prince Edward Island (PEI) granted Royal Assent to Bill No. 43, Similar to the Ontario Act, including some of the provisions of the Uniform Franchises Act. The Act came into effect on July 1, 2006. Draft regulations implementing specific disclosure requirements came into force on January 1, 2007.

CANADA  DMA MAP