Three provinces are expecting big changes in the area of
franchise legislation, some of which will be more welcomed by
franchisors than others:
Ontario is proposing an amendment to Regulation 581/100 under
the Arthur Wishart Act (Franchise Disclosure) (the
"AWA") that would make it easier for Franchisors to
provide disclosure documents to prospective franchisees.
Currently, there are only two ways franchisors can deliver
disclosure documents to prospective franchisees: either personally
or by registered mail. The proposed amendment would allow a
disclosure document to be delivered by courier or
The proposed amendment states that if the disclosure document is
delivered electronically, its format must allow the recipient to
view, store, retrieve and print it. The disclosure document also
cannot contain links to external documents or content. If the
disclosure document consists of separate electronic files, it must
include an index listing the file names. Finally, electronic
delivery will not be complete until the franchisor receives
electronic acknowledgment of receipt from the prospective
This amendment will make the AWA consistent with franchise
legislation in Prince Edward Island, Manitoba, and New Brunswick,
which already permit disclosure documents to be delivered
The proposed amendment also provides for the delivery of a
notice of rescission by pre-paid courier.
The Ministry of Government and Consumer Services is seeking
comments on the proposed amendment until May 2, 2016. Comments may
be sent to the Ministry by emailing email@example.com.
In Alberta, the government is considering removing an exemption
in the Franchises Act that affects "mature"
franchisors. Currently, franchisors meeting certain criteria of
size and net worth and who have a proven track record are not
required to disclose financial statements in their disclosure
document to prospective franchisees.
If the amendment passes, mature franchisors will lose this
exemption, making Alberta's Franchises Act
inconsistent with other provincial franchise legislation, including
As we reported in our November 2015 bulletin, British
Columbia's Franchises Act received royal assent in
November 2015. It is expected to come into force by the end of
2016. The legislation will bring B.C.'s franchise regime in
line with other Canadian jurisdictions. It remains unclear when,
specifically, B.C. will proclaim its franchise legislation into
The foregoing provides only an overview and does not
constitute legal advice. Readers are cautioned against making any
decisions based on this material alone. Rather, specific legal
advice should be obtained.
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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