After long anticipation from the franchise industry, the
government of Ontario has finally amended regulations under the
Arthur Wishart Act (Franchise Disclosure), 2000
("Act") to expressly allow a franchisor
to deliver its franchise disclosure document electronically and by
prepaid courier. Once the amended regulations come into effect on
July 1, 2016, there will be four acceptable means of delivery of a
franchise disclosure document in Ontario: personally, by registered
mail, by prepaid courier, and electronically.
In order to deliver a disclosure document electronically, the
following specific requirements must be met:
the document must be delivered in a form that enables the
recipient to view, store, retrieve and print it;
the document must not contain any links to external documents
the document must contain an index for each separate electronic
file comprising the document where each index sets out the file
name and, if the file name is not sufficiently descriptive of the
subject matter of the file, a statement of that subject matter;
the franchisor must receive written acknowledgment of receipt
from the prospective franchisee.
The amended regulations also permit delivery of a notice of
rescission by prepaid courier in addition to personal delivery,
registered mail or fax.
All general requirements pertaining to disclosure (e.g. that
disclosure be made as one document at one time) will clearly apply
to the new forms of disclosure.
Prior to these amendments, Ontario was the only province that
specified mandatory delivery methods and did not explicitly permit
delivery electronically or by courier. The amended regulations
streamline the delivery requirements, and create greater
consistency, across Canada.
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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