The disclosure document is the centrepiece of franchise law in Canada. In those provinces which have franchise legislation, franchisors are required to provide prospective franchisees with a sufficient amount of background on the system via the disclosure document so that those prospects can make informed investment decisions about whether they want to become a franchisee or not.
One of the tenets of franchise law is that, while containing all the requisite pieces of information which the legislation requires, disclosure documents must also be â€œclear and concise.â€ Conciseness is generally anathema to lawyers, and those who practice in franchising are no exception. As a result, it is not uncommon to come across disclosure documents that are anywhere from 100 â€“ 400 pages long, depending on the number of attachments to the main document. Full article.