As noted in previous Cassels Brock Franchise Law e-Lert (
click here) Manitoba has proclaimed that its Franchises
Act will come into force on October 1, 2012. This date is
only three months away, so if they haven't already, franchisors
should begin the process of making their franchise documentation
compliant with Manitoba's requirements.
If you plan to offer franchises in the province of Manitoba, or
currently have franchises there which require renewal or will be
transferred on or after October 1, 2012, you need to consider
changing your franchise disclosure document (FDD) in order for it
to comply with the new Manitoba requirements. Manitoba is the fifth
Canadian province to bring in a franchise law, and this law
includes the requirement that franchisors provide to prospective
franchisees an FDD at least 14 days prior to the prospective
franchisee signing any agreement or paying any consideration in
respect of the franchise. This new legislation also means that half
of all Canadian provinces now have a statutory franchise disclosure
Most franchisors now have a single form of Canadian FDD intended
for use in the other four provinces currently mandating pre-sale
disclosure, namely Alberta, Ontario, New Brunswick and Prince
Edward Island. With some small amount of effort by counsel and
franchisor, a franchisor can most likely then have a form of FDD
that is compliant with all five franchise law provinces as of
October 1, 2012. That may be good practice, given that the date of
Manitoba's law coming into force is only a few short months
If you have not contacted us yet to update your Canadian FDD for
use in all provinces, or need assistance in developing an FDD for
the province of Manitoba, please contact a member of our
Franchise Law Group so that the necessary changes can be made
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.
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