Ontario is proposing to amend Regulation 581/00 under the
Arthur Wishart Act (Franchise Disclosure, 2000) to permit
franchisors to electronically deliver disclosure documentation
("FDD") to prospective franchisees as well as deliver FDD
by courier. See the proposed amendments here.
The draft legislation provides that electronically delivered
FDD's must be in a form that enables the recipient to view,
store, retrieve and print it, contains no links to external content
and has an index for each separate electronic file that describes
the subject matter therein. Electronic delivery of FDD's will
only be effective were the franchisor receives an electronic
acknowledgement of receipt from the prospective franchisee. The
proposed amendments will also permit delivery by courier at the
cost of the franchisor, as well as delivery of a notice of
rescission by pre-paid courier. Franchisors may currently provide
disclosure documents to franchisees personally, by registered mail
or by any other prescribed method – there are no other
prescribed methods of delivery.
We encourage franchisors subject to the Ontario franchise
legislation to submit any comments before May 2, 2016. Instructions
on providing feedback are set out at the link above.
Going west, the Alberta government is considering removing the
Mature Franchisor exemption from the Franchises Act. Under
the Franchises Act Exemption Regulation, a large size
franchisor is currently exempt from disclosing financial statements
as part of its FDD if the franchisor or the corporation controlling
the franchisor meets certain criteria of established size and net
worth. This exemption is consistent with other provincial franchise
legislation. If Alberta removes the Mature Franchisor exemption, it
poses a(nother) risk that will make Alberta less attractive to
franchise system investors.
We are closely tracking the process of these proposed amendments
in both Alberta and Ontario and will keep you apprised of any
developments as they arise.
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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