As of July 1st (Canada Day), the regulations to the
Ontario Arthur Wishart Act (Franchise Disclosure) 2000
will be amended to allow delivery of franchise disclosure documents
by courier and by electronic transmission. For the past 15 years
this has been a sticking point for franchising in Ontario, as
previously only personal delivery or registered mail were permitted
as methods of delivery of disclosure documents.
When delivering by electronic transmission, the document must be
delivered in a form that enables the recipient to view, store,
retrieve and print it. It cannot contain any links to
external documents or content, and it must have an index for each
separate electronic file (if any) and the index must set out the
file name and if the name is not sufficiently descriptive, a
statement of the subject matter. If the disclosure document
is delivered electronically, the franchisor must receive a written
acknowledgement of receipt from the prospective franchisee.
If the disclosure document is sent by courier, the cost of
delivery must be paid for by the franchisor.
Franchisees may send a notice of rescission by prepaid courier
to the franchisor and such notice will be deemed to be delivered to
the franchisor on the second day after the day of delivery by
The amending regulation, which was filed with the Registrar of
Regulations on June 3, 2016, as O. Reg.164/16, will come into
effect on July 1, 2016.
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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