Franchise Agreements will often have a requirement for a personal guarantee from the franchise operator guaranteeing the franchisee's corporate obligations. If the guarantor is a resident of Alberta, a new legislative amendment which comes into force on April 30, 2015 will change the procedural requirements of obtaining this individual guarantee. 

On April 30, 2015, Bill 44: Notaries and Commissioners Act which amends the Alberta Guarantees Acknowledgement Act, will come into force thereby requiring individual guarantors to appear before a lawyer, who is an active member of the Law Society - instead of a notary as previously required - to complete a certificate in respect of the guarantee. This certificate verifies that the guarantor is aware of the contents of the guarantee and understands it. For a copy of the new form that will need to be executed by a lawyer in this regard, please contact a member of our Franchise Group here.

It should be noted that the current requirement for the certificate verifying the individual guarantee is unique to Alberta.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.