Manitoba has just released its draft regulation under the
Franchises Act. Manitoba is the fifth province after Alberta,
Ontario, New Brunswick and Prince Edward Island to pass a franchise
disclosure and relationship statute.
The Manitoba Government is consulting the public for feedback on
the draft regulation. Any comments are to be delivered by
December 15, 2011.
Unlike other provinces, the Manitoba statute does not require
delivery of a disclosure document at one time as one
document. Disclosure may be made in piecemeal fashion, but
the obligation to disclose is not met until the date of delivery of
the last document.
The proposed regulation also permits electronic delivery of a
disclosure document whereas the Ontario legislation, for example,
A disclosure document from another jurisdiction is permitted
provided that the franchisor "includes such additional
information with that document as is necessary to comply with the
disclosure requirements of the Act and this regulation".
A notice of rescission must be delivered by prepaid
courier. Unlike other provinces, delivery of a notice by fax
is not prescribed.
Where earnings projections are not provided a statement to that
effect is required. Where such projections are provided,
either directly or indirectly, a statement must be provided
the assumptions and bases underlying the projection, its
preparation and its presentation;
whether the projection is based on actual results of existing
franchises or of existing businesses of the franchisor or the
franchisor's associates of the same type as the franchise being
offered and, if so, the locations, areas, territories or markets of
such franchises and businesses;
if the projection is based on a business operated by the
franchisor or the franchisor's associate, that the information
may differ in respect of a franchise operated by a franchisee;
where information that substantiates the projection is
available for inspection.
Items (b) and (c) above, are not included in Ontario's
Franchise Disclosure Regulation, O. Reg. 581/00, section 6.3 of
If an earnings projection for the franchise is provided, a
statement specifying the reasonable basis for the projection, the
assumptions underlying the projection and a location where
information is available for inspection that substantiates the
The Franchises Act provides that the franchisor may require
payment of a refundable deposit. The draft Regulation provides for
this to be in an amount up to 20% of the initial franchise fee, to
a maximum of $100,000.
A copy of the Franchises Act, S.M. 2010, c. 13 is available at
the following link:
The prospect of an internal investigation raises many thorny issues. This presentation will canvass some of the potential triggering events, and discuss how to structure an investigation, retain forensic assistance and manage the inevitable ethical issues that will arise.
From the boardroom to the shop floor, effective organizations recognize the value of having a diverse workplace. This presentation will explore effective strategies to promote diversity, defeat bias and encourage a broader community outlook.
Staying local but going global presents its challenges. Gowling WLG lawyers offer an international roundtable on doing business in the U.K., France, Germany, China and Russia. This three-hour session will videoconference in lawyers from around the world to discuss business and intellectual property hurdles.
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).