Want To Buy A Franchise? Read This First

Globe and Mail:

If you’re considering “buying” a franchised business in Canada and you live in Ontario, Alberta or PEI (and soon, New Brunswick), consider yourself lucky because they have specific legislation that protects franchisees.

In the current Canadian “disclosure jurisdictions” of those three provinces, the franchisor is required by law to give prospective franchisees a Franchise Disclosure Document, and a franchise agreement cannot be entered into until at least 14 days after the delivery of that document to the franchisee. In Ontario, no deposit can be provided or any other contract entered until that time period passes.

The three provinces provide substantial remedies to franchisees when the franchisor has not provided the disclosure document, or the franchisor has entered into a franchise agreement before the expiry of the 14-day “cooling off period,” or the franchisor has failed to disclose (or has improperly disclosed) a material fact.

Read more.

Leave a Comment

Your email address will not be published. Required fields are marked *