Whether it is a new calendar year and/or a new fiscal year,
franchisors should now be considering updates to their Canadian
franchise disclosure document (FDD). If you plan to offer
franchises in any of the five Canadian provinces requiring
disclosure, or will have renewals or resales coming up, you need to
ensure that your FDD complies with the requirements of each
applicable provincial franchise law, and that the contents of your
FDD are consistently accurate and up-to-date. That includes
updating of all prescribed disclosure items (some of which require
updating every new calendar year, some on the change of a
franchisor's fiscal year, and others which require more
frequent updating), and ensuring the FDD always includes all
A relatively small amount of effort by counsel and the
franchisor can yield a form of FDD that can greatly minimize your
risk of a claim based on non-compliance.
While franchisors should frequently turn their minds to updating
and maintaining their Canadian FDDs, the start of a new calendar
year marks a time when franchisors should begin the process of
updating the contents of their franchise documentation and/or
ensuring such documentation is compliant with the existing
Remember that the provinces now with a franchise law are
Alberta, Manitoba, New Brunswick, Ontario and Prince Edward Island.
The province of British Columbia will soon have a franchise law,
but as it is not yet in force, you do not need to update now your
FDD for compliance with that franchise law.
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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