Further to our
update in April Ontario has approved the amended regulations to
the Arthur Wishart Act (Franchise Disclosure), 2000 to
permit electronic delivery of franchise disclosure documents
("FDD's").Regulation 581/00 comes into effect July 1,
Effective July 1, 2016, franchisors will now be able to deliver
FDD's electronically or by courier, in addition to the
previously approved methods of in person or registered mail
delivery. The complete changes may be viewed here.
With these amendments, Ontario franchise legislation has
received a mini-modernization-makeover.
The new legislation provides that electronically delivered
FDD's must meet the following conditions:
be in a form that enables the
recipient to view, store, retrieve and print the FDD;
contain no links to external
have an index for each separate
electronic file setting out a file name or a description of the
subject matter if the file name isn't sufficiently descriptive;
the franchisor must receive a written
acknowledgement of receipt from the franchisee
As noted, the amendments also permit delivery of the FDD by
courier at the cost of the franchisor, as well as delivery of a
notice of rescission from franchisees by pre-paid courier.
E-delivery promotes business efficiency and reduces the cost of
delivering increasingly lengthy disclosure information that
responds to current disclosure requirements. Franchisees will also
be able to search and review FDD's more easily. The new
legislation is a positive development for franchisees and
Of interest, the Ministry of Government and Consumer Services
has appointed a Business Law Advisory Council to make
recommendations on how to amend Ontario corporate and commercial
laws to make them more “business-friendly”. We will
keep our eyes and ears open for any changes of interest.
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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