After months of consultation with industry stakeholders, the
British Columbia Law Institute ("BCLI") has issued its
Report on a Franchise Act for British Columbia (the
"Report"), which makes a recommendation to the Government
of the Province of British Columbia to enact franchise legislation
in that province. In the Report, the BCLI has recommended that
British Columbia should enact franchise legislation similar to the
legislation already in force in five other Canadian provinces:
Alberta, Ontario, New Brunswick, Prince Edward Island and Manitoba.
The possibility of British Columbia legislation is a significant
development for franchisors with existing franchisees in the
province, or franchisors who intend to develop franchises
The Report's main recommendations are as follows:
British Columbia should enact franchise legislation based
generally on the franchise legislation already in force in other
Disclosure documents should be valid if they are in substantial
compliance with the legislation and regulations, and minor defects
should not lead to a rescission right by franchisees;
Fully refundable deposits prior to disclosure should be
permissible, limited to an amount prescribed by regulation;
Delivery of a disclosure document by electronic means such as
e-mail, or delivery of a disclosure document in machine-readable
form (such as a DVD disk), should be expressly permitted;
A franchisee's statutory right to sue for misrepresentation
should extend to misleading statements made in a financial
projection supplied by the franchisor before a franchise agreement
is signed, unless the projection contains cautionary language
similar to that required by securities legislation in
"Wrap-Around" disclosure documents should be
The legislation should contain statutory language that forces
all litigation concerning the franchise (including arbitrations),
whether statutory or otherwise, to take place in British Columbia
in order to prevent the potential splitting of cases; and
The statutory bar to waiving or releasing a right under the
legislation should not prevent a waiver or release that is part of
a post-dispute settlement.
Other more detailed recommendations as to the contents of a
compliant disclosure document are also included in the Report. A
copy of the Report can be found
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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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.
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